2023-07-06 12:56:43
Posted Jul 6, 2023 at 12:55 p.m.Updated Jul 6, 2023 at 12:56 p.m.
Like the French economy, SMEs and VSEs are expecting a slowdown in their activity this year. Only a third of them believe that it will increase, against 42% a year ago, while one in five (21%) anticipates a decline, according to the latest business survey carried out by Bpifrance between mid -May and mid-June and published this Thursday.
The brake will be clear: the turnover of the 5,000 SMEs and VSEs that responded would only increase on average by +1% in 2023, after an increase of 6% in 2022. With disparities depending on the size of the companies . VSEs would suffer a drop of 1% while SMEs would register an increase of 2%, or even 5% for those employing more than 100 employees. Data “consistent” with the assumption of a GDP growth of 0.5% over the year, according to Philippe Mutricy, director of studies at Bpifrance.
“No hard adjustment”
Whatever the sector, the outlook is deteriorating. Order books have shrunk, and business leaders are not expecting recovery. The horizon is darkening especially for the construction sector, hit hard by the rise in interest rates while tourism is still benefiting from a catch-up effect.
Between the global economic slowdown, inflation and high interest rates, activity will remain under constraint in 2024, warn Bpifrance experts. However, the latter do not foresee, at this stage, a sudden adjustment, particularly in terms of employment. The cash position of companies remains “comfortable” despite the recent deterioration.
To cushion the impact of the rise in their costs, 52% of VSEs-SMEs intend to increase their selling prices in 2023, notes Bpifrance, a figure in sharp decline (72% in 2022). Companies also draw on their state-guaranteed loan (PGE). In mid-2023, two-thirds of beneficiaries declared having consumed the majority of the amounts. And only 4% said they feared not being able to repay it.
In this context, only 45% of French VSEs and SMEs intend to invest in 2023, i.e. less than before the pandemic (50%). The amounts spent should also be down slightly. The cost of credit is cited as the first brake with weak demand.
#Sharp #slowdown #sight #French #SMEs #VSEs