Normandy’s CCI’s new barometer: economic recovery confirmed, but trade and cafe-hotel-restaurant concerns continue

New business barometers confirm that 2021 will be the year of Normandy’s recovery. The Normandy CCI Network interviewed a panel of 2,360 Normandy managers in mid-January to acquire shares in the second half of 2021 and estimate the business outlook for the first half of 2022. Business leaders in particular report some obstacles that affect future activities.

The Normandy economy continues to recover in the second half of 2021

After a strong economic recovery in the first half of 2021, activity continued to improve in the second half of 2021, but the intensity was weak. Overall, 29% of companies recorded better business development in the second half of 2021 and 47% reported stability.

Construction, industry and business services are on track, but local shops, services and CHRs are affected by the wave of Covid-19. These activities weakened again between the health measures introduced to suppress the fourth wave linked to the “Delta” variant and the arrival of the fifth wave linked to the “Omicron” variant at the end of the year. .. Therefore, 50% of CHRs reported a decline in sales in the second half of 2021.

Successive price increases in energy, raw materials and supplies have negatively impacted cash conditions and company profits. These two performance indicators deteriorated at the end of 2021.

The fifth wave “Omicron” and rising prices confuse business leaders’ optimism

In the context of the strong distribution of the “Omicron” variant, which was questioned from mid-January 2022, the manager expressed a slight decline in the overall business outlook. Overall, even if 66% of them are confident in their activities in the first half of 2022, they will have to face more challenges than before, such as rising prices.

CHR, a local shop and service that is particularly exposed to health care, is pessimistic in early 2022. 81% of CHRs and 63% of local shops and services believe that the fifth wave will have a negative impact on their activities.

Companies facing many obstacles!

Economic recovery is under the constraints of increasing difficulties in focusing on supply, recruitment and cash flow.

Supply issues are a major concern for 36% of companies (+23 points compared to the first half of 2021). Rising prices for raw materials, energy (electricity, gas, fuel), and supplies are the main difficulties encountered in the face of extended delivery times and supplier orders.
Human resource development issues are related to 22% of companies, not just construction, but also industry and business services.

Twenty percent of Normandy managers are still concerned about cash flow conditions, which is why they are concerned about rising inflation.

Normandy leaders’ expectations for public institutions

The Normandy CCI Network, a corporate spokesperson, has raised the expectations of Normandy leaders for public institutions not only in the context of recovery, but also in the context of presidential and legislative elections.

Entrepreneurs mainly want support from their financial capacity. 34% of them claim to support exceptional aid, tariff cuts, and tax cuts.

Twenty-eight percent of leaders want to strengthen public policy in terms of employment and training, especially to combat the tense sector.

Proximity and promotion of regional development also have high expectations for 23% of companies. They want more regional economic initiatives and both short circuits and support for regional suppliers.

It should also be noted that 19% of Norman’s leaders questioned do not have the expectations of public authorities.

Very fine mesh

More than 2,360 Normandy leaders were interviewed by the Normandy CCI Network to get an idea of ​​what’s happening in the region. This is an analysis published by CCI Normandy at CCI Observatoiren ° 25. Each CCI publishes its results at the local level. The set makes it possible to know the economic situation in a very accurate way.
Find a business barometer for each region, as well as local conditions.