The economic situation report drawn up by the CCI in the first quarter of 2017 confirms the improvement in the Côte d’Azur’s economy observed overall in 2016 (+1%), despite the shock caused by the attack on July 14, 2016.
All sectors are benefiting from this renewed dynamism and optimism for the current year, even if certain branches of commerce and services are encountering difficulties.
A positive assessment of activity, encouraging order book forecasts, and a dynamic business environment are all positive signals that suggest a better-oriented 2017, according to the consular chamber’s report.
Industrial activity shows good activity dynamics (+1%) as well as optimistic forecasts from business leaders. Exports contribute to the improvement of activity (+1.5%). This favorable climate is also evident in the employment forecasts made by executives. Entrepreneurs are optimistic about the order book levels with a satisfactory volume of activity expected in the coming months.
The construction sector is slowly recovering.
In the Building sector, the long-degraded activity is slowly improving thanks to new projects in the area. However, business leaders remain cautious about their forecasts and hiring intentions. The year 2017 looks better than 2016, but the activity outlook remains to be confirmed.
For Public Works, activity increases in the 1st quarter (+1.5%) in a rather favorable activity environment according to entrepreneurs. The forecasts and activity levels are fairly good.
The positive employment volume from 2016 is confirmed in the 1st quarter (+1.5%).
Local commerce: a sluggish activity while wholesale trade progresses
Local commerce starts the year 2017 with a declining activity volume of -1% and rather mixed forecasts. The sales did not meet the professionals’ expectations.
The employment volume evolution remains quite weak, with no real improvement perspectives for the coming months.
For wholesale trade, on the other hand, the business volume increases by 1.5%. This trend is expected to continue, with good export prospects.
Tourism activity: the summer of all challenges
The tourism activity, which includes hotels, cafes, and restaurants, is marked by a 1.5% decline in business volume, directly impacting jobs (-1%) in the 1st quarter.
The 2017 outlook is not well oriented for 53% of leaders who lament a decrease in the attractiveness of the Côte d’Azur (for 23% of them). Yet, business leaders are adopting a positive employment dynamic for the upcoming high season, particularly in hotels.
Outside tourism, the activity volume for services is maintained in the 1st quarter of 2017, mainly driven by the business services branch (+3.5%). The forecasts for the business volume of the domestic market, as well as exports, are rather positive.
The economic area of the Plaine du Var records very good results with a revenue increase of +4%, followed by the Nice Basin (+2%) and Grasse (+1%). Respectively driven by industry for the Plaine du Var and Grasse, the Nice Basin is supported by service activities outside Hotels-Cafes-Restaurants, with +1% in employment levels.
The year 2017 starts rather flat for the other coastal basins (Cannes, Antibes, Menton), whose results are mediocre despite good export performance.
