business climate in the first quarter 2016: the morale of Heads … – Imaz Press Meeting

The Institute of issuance of overseas departments (IEDOM) published its position paper for the first quarter 2016. This note provides an analysis of economic affairs of Reunion in the first quarter. The moral entrepreneurs crumbles and economic downturn remains to be confirmed. We publish the full notes below (illustrative photo)

 “In the first quarter 2016, the indicator of the business climate (ICA) falls down sharply (-4.4 points). At 97.6 points, it returns well below its long-term average but remains close its average level in 2014, good economic held year (growth of 3.1% according to estimates prepared under the partnership CEROM).

 The fall of the CIA, for a second consecutive quarter, validates the idea that the peak of the cycle is

 probably reached and the economy struggles, these already high levels, to find a new impetus. Nevertheless failover in a real degradation phase is not engaged and the fear of a reversal to be confirmed. Indeed, the survey of business leaders is probably influenced by the strike that paralyzed the construction Island in early April, and certainly affected the morale of business leaders.

 This is also essentially the future component of the index that grows ICA downward (almost 60%) due to deterioration, probably exaggerated, the business outlook. The positive opinion given to the order books and the maintenance of investment forecasts are, however, rather reassuring.

 The last component also decreases, but marginally, due to a deterioration of cash and especially prices. It establishes a point below its long-term level.

 The component “activity” of the investigation did not confirm the favorable expectations expressed by business leaders in the past quarter. These settlement signs also affect employment. Indeed, the balance of opinion concerning the manning decreases but remains above its long term average.

 The entrepreneurs surveyed are more likely to see a decrease in their sales prices. For many this context of pressure on prices is an issue that weighs on their morale and their business outlook. The views of business leaders on their customer payment delays, their costs and their cash, however, remain favorable. “

  emission Institute Dom