At the start of the year, entrepreneurs are on deck to deal with the slowdown in economic activity. In particular, VSE-SMEs remain strongly constrained by the increase in their cost prices, whether for raw materials, supplies, energy, salaries or financial costs, the latter having exploded in space of one year. However, at the other end of the chain, the market’s capacity to absorb price increases has reached its limit and consumption is in notable decline.
Rather restrictive prospects for our VSE-SMEs with more than 400 companies in the region which responded to the half-yearly economic survey of CCI of Auvergne-Rhône-Alpes. In 2023, VSE-SMEs in the region, which recorded an increasing turnover, were the most numerous (43%), but this percentage is however down compared to the previous year and it must be appreciate in the inflationary context.
However, more than a third of companies report a declining margin in a context where consumption lacked dynamism at the end of last year. Business outlook for the first half of 2024 are generally not very optimistic, particularly in transport, construction and commerce: 38% of VSE-SMEs perceive that their development is hampered by the lack of vigor of activity.
The persistent inflationary context (prices of inputs and energy and rising wages) also remains a barrier for many companies: 32% of VSEs-SMEs say they are in a difficult cash flow situation, a peak since 2019. These perspectives are expressed in a context of deterioration of confidence in the general economic situation, and this, before the blockages of the social movement of farmers.
Employment is holding up with a slowing pace of development, which does not prevent recruitment difficulties from remaining at a high level to the extent that 43% of VSE-SMEs report this. The investment shows stability compared to the situation six months ago. Nearly 40% of VSE-SMEs say they are hampered in their productivity gains.
Pour Philippe GUERANDPresident of the CCI of the Auvergne-Rhône-Alpes region “ After having demonstrated resilience in 2023 in the face of the slowdown in economic activity, our regional VSEs/SMEs remain constrained by the increase in their cost prices (raw materials, supplies, energy, salaries and financial costs). Their main room for maneuver consists of improving their productivity, with investment as a key success factor. Also, I am delighted that our study shows that our business leaders are not letting down their guard in terms of investment ».
An article from the editorial staff of the Journal de l’éco
2024-02-27 03:05:53
#Economic #situation #Slowdown #AuvergneRhôneAlpes
