According to Statistics Netherlands, the mood among Dutch manufacturers in September has improved slightly compared to August. The producer confidence indicator has risen from 3.5 in August to 3.8 in September. This is mainly because Dutch manufacturers are more positive about their order books and stocks of finished products. Optimism has prevailed among Dutch manufacturers since October 2014.
Confidence among manufacturers is still well above its long-term average over the past two decades (0.4). The indicator reached an all-time high of 9.4 in January 2008, but dipped to an all-time low (-23.5) more than one year later.
Manufacturers more positive about order books and stocks of finished products
In September, Dutch manufacturers are more positive about their stocks of finished products and order books than in August. However, they are less positive about their future output in the next 3 months.
All component indicators of producer confidence are positive. Manufacturers who anticipate output to grow outnumber those expecting it to decline over the next three months. Given the time of year, the manufacturers who consider their order position as strong outnumber those who think it weak. More manufacturers consider their stocks of finished products too small rather than too large.
Manufacturers also positive about future employment
For the first time since July 2011, manufacturers expecting employment to improve in their branches outnumber those expecting personnel cuts. For September, 11.7 percent anticipated the workforce to grow, whereas 11.2 expected a decrease. The balance of positive and negative answers was 0.5.
For more information on economic indicators, see the Economic Monitor.