The economy in Provence-Alpes-Côte d'Azur : New Term situation and Short-term perspectives

Monthly inquiries (industry and trade services) and quarterly (BTP) of the economic situation, with 450 advisers of the region.
- Specific inquiry made in September 2007 with 170 companies of the regional industry employing 37.000 employees - i.e. a 25 % representation of the industrial workforce PACA.

The elements gathered by the Bank of France from companies in Provence-Alpes-Côte d'Azur testify a positive orientation of the situation during the 1st half of the year 2007. The indicators of activity, order books and the evolution of the financing granted to the economic agents suggest a steady progress of turnovers for the whole year, accompanied with positive effects on investment and employment. At the same time, and just like the degradation of the foreign trade balance of France, the companies of the region do not completely take advantage of a still lively international growth, in a context marked by the new price increase of raw materials and the appreciation of the euro in relation to the dollar.

Continuing a good year 2006, the regional industry registered a progress of activity during the first half of the year. Despite the exports contribution that was lower than expected, the 170 questioned companies benefited from a dynamic global demand and bank on an evolution of about + 7,5 % (in value) in turnovers in 2007. - graphs 1 (order books) and 2 (turnovers). These evolutions, which certainly integrate the price effects in certain branches in relation to the increase of agricultural raw materials or petroleum, are globally higher than what was expected at the beginning of the year.

They rely on the well-filled order books and on a demand for production capacities above the average on long term. This situation entails a high rate of corporal investment expenditures, due to the sector of equipment industry (aeronautics, mechanical engineering and electric equipment). - graph 3 (TUC industry)
Other sectors of the regional economy also show a development of their activity. Growth continues in the Building and Public Works sector, boosted by the construction of collective flats and civil engineering projects. The trade services register a regular activity progress, spurred by branches linked to tourism - foreign frequency and services to companies - cleaning, computer engineering. Graph 4 ( trade services)
The employment market continues to improve in 2007, even if the net creation of employment is lower than the national level, due in particular to the pursuit of adaptations in the branch of industry (- 0,2 % in our inquiry). With a rate of 9, 8 % at the end of June, for the 1st time the regional unemployment rate drops below 10 % (France 8 %). Graph 5 (employment).

On the whole, these various indicators reflect the pursuit of a favourable situation for the regional companies, in an always lively context of world growth, illustrated by the development of sea traffic. To make the most of the situation, structural solutions should be sought particularly in innovation and training, sources of productivity gains and market shares, notably in export. n