According to the last INS survey, executives in processing industry anticipate a modest growth in production in the second quarter with 8% cyclical variation versus 3% in March survey.

Executives in this sector expect companies to start a new wave of layoffs in the coming period (cyclical variation -8%), most likely the mid-size companies with 250-500 headcount (-13%). Tobacco, printing, paper manufacturing, are expected to take the heaviest losses this quarter (-48% and -28% cyclical variation).

In the services sector, executives anticipate a mild growth in demand, the cyclical variation being +8% versus +4% a month earlier. However, companies will continue shedding jobs (-7%) in particular the large ones with a workforce of 500 and plus.

Construction execs are slightly more optimistic compared to April, betting on a stability in output (cyclical variation +1% versus -11% in March survey) and in orders (-1%). Layoffs still looming in the sector as well (-12%).

As for the retailing industry, executives improved forecasts, and anticipate a stabilization of activity in the next three months (+4%) driven by mild increase in sales but see more job cuts ahead (-12%).

Prices are likely to grow further in almost all industry sectors, except for services, where managers anticipate a "relative stability".