Producer confidence substantially up

The mood among Dutch manufacturers improved substantially in October. Statistics Netherlands announced today that the producer confidence indicator rose from - 0.2 in September to 2.0 in October. Over the period August-September, the indicator fell by 1.4 points. The higher confidence level in October is mainly due to the fact that producers were far more positive about their output over the next three months and their order positions.

Producer confidence has shown an upward trend since October 2012. Confidence among manufacturers is currently above its long-term average over the past twenty years (0.5). In January 2008, the indicator reached an all-time high (9.4) and in February 2009 the indicator reached an all-time low (- 23.5).

Producer confidence in manufacturing industry

Producer confidence in manufacturing industry

Far more positive about their future output and order positions

Manufacturers were far more positive about their output over the next three months and their order positions, but they were slightly less positive about their stocks of finished products than in the previous month.

Capacity utilisation improved

In the fourth quarter of 2014, the capacity utilisation rate in manufacturing industry is back to the level of the second quarter. In the third quarter, the rate 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 the average daily output generated by Dutch manufacturing industry was 1.4 percent up in August 2014 from August 2013. Since October 2013, Dutch manufacturing output has grown almost continually relative to the same month one year previously.

Capacity utilisation rate, first month of the quarter

Capacity utilisation rate, first month of the quarter

Consumer confidence also up in October

Last week, Statistics Netherlands released information which indicated that the mood among Dutch consumers has improved in October. In the preceding two months, consumer and producer confidence had declined, partly as a result of the tense geopolitical situation.

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.