Manufacturing companies remain very optimistic. The producer confidence index was 8.2 in August 2006. This is a slight lower than in July, when it reached a record value of 8.9. In the past twelve months producer confidence has improved substantially.
Producer confidence is the mood indicator for the manufacturing industry. The figure consists of three component indicators: expected production over the next three months, manufacturers’ opinions on the stock of finished products and the order position. Figures on producer confidence are seasonally adjusted.
In August 2006, manufacturers were more positive again about future output than in the month before. Their opinions on stocks of finished products did not change. They were slightly less optimistic than in July about their order books. It was the positive opinion on order books in July that producer confidence in that month reached the highest value since the start of the survey, in 1985. The record value of the producer confidence in July is explained in further detail in the Web magazine of 14 August.
The Business Sentiment Survey of August shows that opinions in most of the branches have not changed much.
Producer confidence in manufacturing industry