In June, Dutch manufacturers were slightly less gloomy than in the preceding month. Producer confidence stood at -15,0 compared to -17,3 in May. Confidence has been improving steadily, after an all-time low in February. It is still quite negative, though.
Producer confidence consists of three component indicators: expected output in the next three months, producers’ opinions on their stocks of finished products and their opinions on their order books.
Manufacturers were less pessimistic with respect to their future output than in May. The number of Dutch manufacturers expecting output to decrease was substantially higher than those expecting an increase. Manufacturers were also considerably less pessimistic about their stocks of finished products. Their opinions on their order positions were just as negative as in preceding months.
The value of orders received declined further in the past three months. Manufacturers were less negative about order books than in previous months, though. The order position index (orders received expressed in months of work) increased slightly, from 100.7 in May to 101.4 in June. Manufacturers were just as pessimistic about future employment in their branch as in preceding months.
Producer confidence in manufacturing industry