In February 2010, the mood among Dutch manufacturers was less pessimistic than in January 2010. The producer confidence index rose from -8.3 to -6.9. This was predominantly caused by more optimism about their order position. Producer confidence has obviously recovered during 2009, but in the last few months recovery faltered.
Producer confidence consists of three component indicators: expected output in the next three months, producers’ opinions on their order books and their opinions on stocks of finished products.
Manufacturers were less pessimistic about their production over the next three months than in the previous month. Their opinions on their order position improved, whereas their opinions on the stocks of finished products deteriorated marginally compared to January.
For the fifth consecutive month, Dutch manufactures reported a small increase in the value of orders received in February. The order position index (orders received expressed in months of work) rose from 96.2 to 98.6. The number of manufacturers expecting higher output prices was larger than in January.
Manufacturers were just as negative about future employment in their branch as in January. Manufacturers expecting employment in their branch to increase in the next three months were still severely outnumbered by those expecting a downturn.
Producer confidence in manufacturing industry