In May 2010, Dutch manufacturers were optimistic for the first time in nearly two years. The producer confidence index stood at 0.4, up from -1.4 in April. Since February 2009, when the indicator was at its lowest level ever, producer confidence has almost continuously recovered.
Producer confidence consists of three component indicators: producers’ opinions on stocks of finished products, their opinions on their order books and expected output in the next three months.
Manufacturers were far more optimistic about their stocks of finished products than in April. Their opinions on their order position also improved. The number of manufacturers who are optimistic about their order position was still significantly smaller than the number who are pessimistic, though. Manufacturers were slightly less optimistic about expected output than one month previously.
In May, Dutch manufacturers reported a substantial increase in the value of orders received. They were less negative about future employment in their branch than in April. However, manufacturers expecting employment in their branch to increase in the next three months were still outnumbered by those expecting a downturn.
Producer confidence in manufacturing industry