On the occasion of the 55th edition of the biannual economic survey, OSEO presented the results by region by analyzing the five main indicators: activity, employment, cash flow, profitability, and investment. The PACA region represents 9.4% of French companies with 1 to 250 employees and contributes 7.2% to the national GDP.
Here are the results broken down by parameter:
Activity
Activity is at a standstill, with 32% of companies fearing a drop in their turnover this year, while 33% hope for an increase. In nominal terms, the change in turnover is expected to be -0.2% on average in Provence-Alpes-Côte d’Azur, below the national average (+0.5%). Although 30% of companies in the region anticipate a growth in their activity in 2013, 15% fear a decrease.
Employment
Slight increase in workforce: 20% of regional companies have increased their staff and 13% have reduced it. A moderate growth in workforce is expected for 2013: 22% of surveyed business leaders plan to increase their staff and 10% intend to reduce it.
Cash Flow and Profitability
After a strong tightening in the first half, short-term tensions are expected. The proportion of companies experiencing difficulties rose from 30% to 39% (vs 37% for the entire country). For the next 6 months, 13% of business leaders hope for an improvement and 28% fear a deterioration. In May, 78% of the region’s leaders considered their company’s profitability as “good or normal” in 2011, an improvement compared to last November (76%) and above the national average (74%). However, in 2012, financial results are expected to deteriorate. While 16% of companies foresee an improvement, 28% fear a deterioration.
Investment
In PACA, only 44% of business leaders plan to invest in 2012. Investment spending is also expected to decrease significantly. While 19% of leaders plan to increase their investment spending, 34% plan to reduce it.
