Producer confidence climbs to highest level in three years

The mood among Dutch manufacturers lifted in July. Statistics Netherlands announced today the producer confidence indicator climbed to 1.2, the highest level since July 2011. The higher confidence level is mainly due to the fact that producers tend to be more positive about their order positions.

Producer confidence in manufacturing industry

Producer confidence in manufacturing industry

Cautiously optimistic about their order positions

Manufacturers were cautiously optimistic about their order positions in July. Their opinions about their order positions have improved almost continuously since May 2013. They were also more positive about their stocks of finished products and their output over the next three months, although they are slightly less positive than in the preceding months.

Capacity utilisation rate marginally in decline

The capacity utilisation rate in manufacturing industry declined marginally for the first time in twelve months, from 80.2 in April to 79.7 percent in July. Earlier this month, Statistics Netherlands announced that manufacturing output has grown continually since October 2013, although growth slowed down somewhat in May. Investments in production capacity (machinery, equipment, computers) have grown during the past months relative to the same months last year.

Capacity utilisation rate, first month of the quarter

Capacity utilisation rate, first month of the quarter

More figures can be found in dossier Business cycle.

For more information on economic indicators, the reader is referred to the Economic Monitor.

Producer confidence consists of three component indicators: manufacturers’ opinions on their order positions, their opinions on their stocks of finished products and the projected output over the next three months.