Mood among manufacturers deteriorates

In December, Dutch manufacturers were more pessimistic than in November. The producer confidence index fell from -5.6 to -8.6, mainly because entrepreneurs were obviously a lot more pessimistic about their future production. Despite the setback, the indicator has obviously recovered since reaching an all-time low in February (-22.9), but the mood remains negative.

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 more pessimistic about their future production over the next three months than in the preceding month. Manufacturers were also less positive about their stocks of finished products than in November. Their opinions on their order position improved somewhat, but remained extremely negative.

In December, the number of manufactures reporting an increase in the value of orders received in the past three months, was for the third consecutively month larger than those reporting a decline. Manufacturers were somewhat more negative about future employment in their branch than last month.

Producer confidence in manufacturing industry