The Vaud economy remains “solid” with GDP growth expected at 1.2% this year, the Vaud Economic Commission indicated on Wednesday. This situation, however, hides “disparities” depending on the sector and whether the companies are oriented towards exports or the domestic market.
Among the good news, the Vaud Economic Commission notes that the services sector confirms “its positive dynamics”. This is particularly the case in the business services branch, while the profit situation has “slightly declined” in the transport, information and communication branches. For the companies surveyed, the lack of labor remains the main obstacle to the smooth running of their activity.
In construction, business performance is considered “generally satisfactory”. Across the sector as a whole, however, more than a third of companies face financing difficulties. This share even reaches 70% of responses in building construction.
Here too, the shortage of labor is still felt, both in the structural work and the finishing work. As for the number of building permits, it is reported to be decreasing for both new constructions, expansions and transformations/renovations.
Industry: expected improvement
In industry, Vaud companies are still feeling the effects of the lack of dynamism in the global economy and the strength of the franc. The situation is particularly difficult in metallurgy and for machinery and equipment manufacturers, but it has improved in chemicals.
Overall, an improvement is expected in the coming months. “Despite a difficult international context, the trend is slightly positive regarding exports and new orders,” the press release continues.
In retail, the situation is not considered “catastrophic”, but the situation of retailers has generally deteriorated this year, both for small businesses and for large players. This “slight downward trend” had an impact on sales and the profit situation. Despite everything, the forecasts show a certain “optimism” for the future.
The restaurant business is suffering
In the Vaud hotel industry, the overnight stays of foreign tourists have compensated for the decline of native guests. The average room occupancy rate remained stable over one year. On the catering side, the sector suffered from bad weather conditions this year. In addition to a drop in customers, the lack of labor is still “significant”.
The outlook is “rather negative” for catering, while the hotel industry views the coming months with more optimism.
This article was automatically published. Source: ats
