Optimism among producers in manufacturing industry continued to rise in July. The last time they were so confident about future prospects was in 1985. They are particularly pleased about their order books. Providers of business services also remain invariably optimistic, according to the latest figures published by Statistics Netherlands.
Producer confidence in manufacturing industry reaches record height
Producer confidence stands at 9.2 in July, the highest score since 1985, when it was first measured. In the course of one year, the mood swung from rather negative to positive.
Producer confidence is a mood indicator for the manufacturing industry. The figure consists of three component indicators, i.e. anticipated production in the next three months, opinions on stocks of finished products and opinions on orders received. About all three issues, manufacturers are more positive in July than they were last month.
Producers are particularly optimistic about the state of their order books. After January 1993, their order books have not been so full, expressed in months of work.
They were also more positive about their competitive position; 14 percent of manufacturers indicate their competitive position has improved, as against only 11 percent in the last quarter.
Business service providers remain confident
Business service providers report an increase in orders received and a higher turnover in the second quarter of 2006. The majority expect turnover to improve further in the third quarter, but the majority is smaller than last quarter. Business service providers also remain optimistic about employment prospects. Service providers like computer service agencies, temp agencies, advertising agencies, cleaning services, consulting engineers, chartered accountants offices and administrative offices are optimistic about turnover and employment in their branch.
As from the first quarter of 2003, business service providers are invited to state their opinion on the economic climate. This indicator has reached the highest score in the second quarter of 2006 since its introduction.
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