Decline in the volume of activity of local businesses at the start of the year, according to a barometer

Activity fell in volume by 1,7% compared to the first quarter of 2022, the Union of local businesses (U2P) seeing in it the effect of inflation which "ended up being right for the growth of activities proximity", according to a press release from this interprofessional employers' organization.

In value, however, the turnover is "driven by inflation" and increases by 3,5%, notes the Xerfi institute, which carried out this quarterly survey in April with 7.675 local businesses.

In volume, the decline reached 8,5% for artisanal food businesses, which confirms for U2P that "the French have reduced their consumption of food products and have turned to supermarkets", in particular following the announcement of an anti-inflation basket by the latter at the government's request.

Companies with less than 50 employees in the hotel and catering industry maintained solid growth, of 2,7%, in their volume of activity, while in value, the increase in their turnover reached 7,5% , "boosted by price increases", according to Xerfi.

The institute also notes a growth in volume of 0,5% for companies with less than 20 employees in the construction sector. For those in manufacturing and services, also with less than 20 employees, Xerfi notes a drop of 1,6% and a decline of 0,3% among the liberal professions.

By company size, the fall in the volume of activity reached 3,7% for companies with no employees, while the contraction was limited to 2,2% for those with between 1 and 5 and 1,2% for those with between 6 and 9 employees.

Finally, 22% of business leaders surveyed report a deterioration in their cash flow during the first quarter, compared to 8% who say they have seen an improvement.