Producer confidence in manufacturing industry was 8.9 in May. The index is 1.9 percentage points up on April. Since the summer of 2005, producer confidence has improved considerably. With 9.0, an all-time high was recorded in October 2006. Since then, the mood indicator among manufacturers has remained consistently high. In May the mood among manufacturers approached the highest level ever recorded.
Producer confidence is composed of three component indicators: anticipated output over the next three months, producers’ opinions about the stock of finished products and their opinions about the order position. Compared to April, more producers think they can increase output. Figures show that manufacturing industry realised a record output over the first quarter. The order position indicator improved marginally in May. Manufacturers were also optimistic about stock of finished products.
Producers who indicate that the number of orders received has increased nearly equalled those who think order receipts have declined. The order position index (orders received expressed in months of work) remained almost the same at 112.1. Manufacturers also remained optimistic with respect to employment. A growing majority of manufacturers expect to have to recruit staff in May.
Producer confidence in manufacturing industry