Senegal: 0.4 point drop in business climate in November

The business climate in Senegal recorded a slight drop of 0.4 point at the end of November 2020 compared to the previous month, according to an opinion survey carried out among business leaders by the Forecasting and Studies Department. economic (DPEE).

The synthetic indicator of this business climate, calculated on the basis of the balances of opinion of business leaders stood at 96.5 during the period under review against 96.9 in October 2020. “This This situation reflects the unfavorable orientations of the opinions of service providers and traders ”, underlines the DPEE. On an annual basis, the business climate also contracted by 3.8 points in November 2020.

The DPEE survey reveals that in industry, supposedly unfair competition (36%), insufficient demand (36%), difficulties in debt collection (32%) and the difficult supply of materials The first (27%) were mostly the main constraints to the activity. “Nevertheless, underlines the DPEE, the business climate has strengthened by 0.6 points in the sub-sector, on a monthly basis, under the effect of the positive trends of the balances of opinion relating to production and orders received. “.

The optimism of respondents regarding the outlook for production and orders has also contributed to the improvement of the indicator of the sub-sector.

Concerning the buildings and public works (BTP) sub-sector, the constraints most cited by the entrepreneurs interviewed are the difficult recovery of debts (100%), difficult access to credit (40%) and the obsolescence of equipment ( 40%). However, the business climate was brilliant (+6.9 points) in the sub-sector, on a monthly basis, in conjunction with favorable trends in balances of opinion relating to general activity and private orders. The optimism of entrepreneurs about the outlook for activity and private orders also contributed to the increase in the sub-sector indicator.

With regard to the services sub-sector, the majority of respondents mentioned the difficulties in recovering debts (63%), competition considered unfair (50%), taxation (38%) and insufficient demand (25%). ) as the main obstacles to activity, in November 2020. In addition, the business climate deteriorated by 1.3 points in the sub-sector, on a monthly basis. This situation reflects the deterioration in balances of opinion relating to orders and turnover.

As regards trade, the difficulties of collecting debts (86%), insufficient demand (43%), the difficult supply of goods (43%), taxation (43%) and judged competition unfair (43%) are the constraints to activity most mentioned by interviewees in November 2020. In addition, the business climate has deteriorated by 0.8 points on a monthly basis, under the effect of negative trends balances of opinion relating to turnover and orders.

LEAVE A REPLY

Please enter your comment!
Please enter your name here