Activity in France has almost returned to its pre-crisis level in July, with a loss of gross domestic product (GDP) of between 1% and 1.5%, the Banque de France estimated on Monday.
Read also: France returns to growth despite a still delicate health situation
The improvement compared to June, when the loss was still 2%, comes from a strong recovery in the hotel and restaurant industry, specifies the central bank in its monthly economic report carried out with 8,500 companies. At the end of July, INSEE estimated that French GDP was 3.3% lower in the second quarter compared to the level reached in the 4th quarter of 2019, the last before the Covid-19 pandemic.
In catering, activity "is now at 79% of the level considered normal, against 69%" in June.
In accommodation, it reached 72% of this level, against only 54% in June, according to the results of the survey carried out by the Banque de France between July 22 and August 4.
In addition,
"activity is generally stable in many sectors of industry, construction and market services".
Fewer companies in difficulty
But the share of companies indicating supply difficulties continues to rise in industry, rising from 47% in June to 49% in July, and remains stable at 60% in construction.
These difficulties particularly concern the automobile, with 83% of businesses affected, machinery and equipment at 71% and electrical equipment at 66%.
The proportion of companies reporting recruitment difficulties increased from 44% to 48% over the same period.
It is higher in services (53%) and construction (54%) than in industry (31%).
In catering, 44% of companies report recruitment difficulties and 43% in accommodation.
In industry, production capacity utilization fell for the second consecutive month but, at 78%, remains close to its pre-crisis level.
This use is also falling in the automotive sector as well as in the aeronautics and other transport sector, where the levels remain lower, at 69% and 72% respectively.
On the other hand, other industrial sectors such as food processing and chemicals have
"returned to their pre-crisis level"
, details the Banque de France.
Read also: The pandemic and the delays in vaccination accentuate the growth gaps in the world
Despite the new health measures introduced at the end of July,
"for the month of August, business leaders generally anticipate stability in activity".
If some sectors could see their situation deteriorate
"in connection with the increase in contamination by Covid"
others could experience a
"slight improvement"
, anticipates the central bank.
