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Business conditions in the services sector have partially recovered, according to managers of companies surveyed in August 2024. The composite index, at 98, recovered 3 points after a 6-point drop last month, but remained below its long-term average of 100. The increase was mainly due to a rebound in the balance of forward-looking opinions on demand and the size of the workforce. Business conditions in the accommodation and food services sector improved in particular.
In August 2024, managers of businesses in the services sector were less pessimistic about the business outlook than in the previous month. The balance of opinions on expected demand rose sharply, as did the balance of opinions on expected activity over the next three months, but to a lesser extent. However, both are below their long-term averages and below their levels in June. The balance of opinions on the overall business outlook for the sector remained virtually stable, below average. The balance of opinions on perceived economic uncertainty fell sharply.
The balance of opinion related to activity over the past three months remained stable and still below average.
Balances related to recent sales price changes remained stable, while balances related to expected price changes decreased again and are at their lowest level since June 2021. Nevertheless, they remain above their respective averages.
Views on expected changes in the size of the labor force over the next three months have rebounded sharply and are now close to the average. In contrast, views on the size of the labor force over the past three months have fallen sharply and remain well below the average.
Business conditions in the accommodation and food services sector improved substantially in August 2024, moving away from their long-term averages. In particular, the forward-looking balance of opinions on demand, activity, and the size of the workforce rebounded sharply. In contrast, expectations for the size and activity of the workforce declined in the past.
In the housing sector, business conditions improved but did not return to their long-term averages. Views of past activity, business prospects in general, and the past size of the workforce in particular rose significantly, while views of the expected size of the workforce fell sharply.
Similarly, in the administrative and support services sector, business sentiment indicators recovered somewhat, but remained significantly weak. This improvement was mainly due to a sharp recovery in the balance of opinion on the expected size of the labor force, especially from the low point last month.
In road freight transport, the business sentiment index remained stable for the third consecutive month, slightly below average. Increases in the expected size of the workforce and overall business outlook were offset by decreases in the expected activity balance.
In the information and communications sector, the business climate index managed to return to the level of the first half of the year: in August, it remained stable below the long-term average. In particular, the balance of recent activities improved, while the balance of expected activities weakened and remained below average.
Finally, in professional, scientific and technical activities, the business climate indicator also remained stable and below average.
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