The business climate is holding up better than expected in Reunion, according to the latest economic trends in Iédom for the last quarter of 2022. Despite inflation, less favorable financing conditions and rising energy and geopolitical uncertainties, the business climate indicator weakens slightly (of 110,7 to 108,1), but remains above its long-term average (100). Business leaders interviewed by Iédom feel a slowdown in activity growth, which should extend into early 2023, in a context of moderation in household consumption and a significant increase in consumer prices. “The drop in imports of goods intended for households and the stagnation of new car registrations and the amounts of household bank card payments in the 4th quarter corroborate the decline in consumption”, indicates Philippe La Cognata, director of the Emission Institute in Reunion. otherwise, fin 2022, the professionals surveyed declared an increase in staff numbers over the quarter. The increase is, however, less strong than at the start of the year, auguring the beginning of normalization of conditions on the labor market. Even less dynamic than in the previous quarter, activity remains improving for most sectors. Merchant services companies, and to a lesser extent those in the construction sector, are most resistant to slowdown.
