The mood among Dutch manufacturers has turned in September. The producer confidence index dropped significantly; from 4.9 in August to -0.5 in September. This is the most substantial decrease since 1985, the first year the index was calculated. Producer confidence is at the lowest level since mid-2005.
Producer confidence consists of three component indicators: expected output in the next three months, producers’ opinions about their stocks of finished products and their opinions on their order books.
Manufacturers were very pessimistic in September with respect to their future output, whereas in August they were still very optimistic. Their opinions on order position were less positive than a month ago. Manufacturers’ opinions on the stocks of finished products remained stable.
In September, the number of manufacturers reporting a decrease in orders received was significantly higher than those reporting an increase. The order position index (orders received expressed in months of work) diminished somewhat. With a score of 114.5, the index retains its high level.