Producer confidence in the manufacturing industry reached 7.8 in December 2006. This is 1.0 point down on November. Producer confidence has risen sharply since the summer of 2005. The confidence indicator has been hovering at a high level since July 2006. The annual average for producer confidence in 2006 was 6.7 compared to 0.6 in 2005. This is about the same as in 2000.
Producer confidence consists of three indicators: expected production in the next three months, opinions about the stock of finished products, and opinions about the order position.
In December, the entrepreneurs were slightly less positive about their expected future production and about the stock of finished products. Their opinions about the order position stayed positive. The satisfaction of manufacturers is due to a gradual increase in the number of orders. The index on the order position (orders received expressed in months of work) reached 105.2 in December.
In December, the number of entrepreneurs who predicted an increase in their workforce was equal to the number predicting a reduction. In the previous three months, a slight majority among de producers predicted an increase in their workforce. In 2001-2005 most entrepreneurs assumed their workforce would be reduced. In 2006 their outlook continuously improved.
Producer confidence in manufacturing industry