In June, manufacturers had reduced their stocks of finished products by more than 13 percent relative to the same month one year previously. The reduction was in the same order of magnitude as in the preceding months. For nearly eighteen months, stocks have continually been smaller than one year previously, but the level of decline is currently stable. The reduction of manufacturing stocks in June occurred simultaneously with a further increase in manufacturing turnover.
The index stocks of finished products (2005=100) stood at 96.3 in June, i.e. 0.5 points up on May. Altogether, the index was barely higher in June than in January 2010, when it reached an all-time low of 95.5.
Stocks of finished products in manufacturing industry (volume)
Manufacturers pleased with level of their stocks
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.
In July 2010, manufacturers’ opinions on their stocks were somewhat more negative than in June. In August, sentiments improved marginally. With a balance of -1, the number of manufacturers evaluating their stocks as too large almost equalled those evaluating them as too small. Manufacturers are obviously much more positive about the level of their stocks than one year ago. This optimism is consistent with the reduction of stocks during the past year.