Manufacturing stocks have decreased continuously for over a year

Manufacturers had reduced their stocks of finished products by 13.5 percent in April compared with April 2009. The decrease in April was somewhat more substantial than in March. For more than a year, stocks have continually been lower than one year previously. The index stocks of finished products (2005=100) rose marginally to 97.2. The reduction of manufacturing stocks occurred simultaneously with a further increase in manufacturing turnover in April.

Stocks of finished products in manufacturing industry (volume)

Assessment of stocks neutral

The Business Sentiment Survey for the manufacturing industry provides a first indication of the development of the index stocks of finished products in the near future. In this survey, manufacturers are invited to define their current stocks of finished products as too large (negative), normal or too small (positive) in relation to projected sales. These results are available two months earlier than data on the stocks of finished products.

Manufacturers’ opinions on their stocks were neutral in June 2010. Manufacturers evaluating their stocks as too small equal those evaluating them as too large. On balance, 2 percent of manufacturers evaluated their stocks as too small last month.
Manufacturers are obviously more positive about the level of their stocks than a year ago. This optimism is consistent with the reduction in their stocks during the past year.

Opinions on stocks of finished products