Producer confidence further up

24/12/2014 09:30

The mood among Dutch manufacturers improved further in December. Statistics Netherlands announced today that the producer confidence indicator rose from 2.4 in November to 3.4 in December, the highest level since May 2011. The higher producer confidence level in December is mainly due to the fact that producers were more positive about their order position.

Producer confidence has shown an upward trend since October 2012. In December 2014, confidence among manufacturers is well above its long-term average of 0.5 over the past two decades. In January 2008, the indicator reached an all-time high (9.4) and in February 2009 the indicator dipped to an all-time low (- 23.5).

Producer confidence in manufacturing industry

Producer confidence in manufacturing industry

More positive about their order position and future output

In December, the slightly negative mood among manufacturers regarding their order positions changed to positive. They were also more optimistic about their output over the next three months, but less optimistic about their stocks of finished products than in the previous month. The number of manufacturers who think their stocks of finished products are too small (positive) still outnumbered those who think their stocks are too large (negative) in view of projected sales.

More output and larger stocks compared to one year previously

The average daily output generated by Dutch manufacturing industry was 0.4 percent higher in October 2014 than in October 2013. The slump in the tobacco industry had a negative effect on output growth.
Manufacturers’ stocks of finished products were 2.9 percent up in October 2014 from October 2013. Over the past seven months, their stocks of finished products have always been larger than twelve months previously, but the increase in October is smaller than in the preceding months.

Stocks of finished products in manufacturing industry (volume)

Stocks of finished products in manufacturing industry (volume)

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.