Dutch manufacturers more optimistic

According to Statistics Netherlands (CBS), confidence among Dutch manufacturers improved in November relative to October. The producer confidence indicator rose from 2.4. in October to 4.0 in November. Producers’ opinions about future output have improved most noticeably.

Confidence among manufacturers is still well above its long-term average over the past two decades (0.4). The confidence 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. Since October 2014, optimism has prevailed among Dutch manufacturers.

Producer confidence in manufacturing industry (seasonally adjusted)

Manufacturers considerably more positive about future output

In November, Dutch manufacturers are considerably more positive about their future output in the next three months. They were also more positive about their stocks of finished products and their order books.

All three component indicators of producer confidence are positive. Manufacturers who anticipate output to grow over the next three months outnumber those expecting output to decline in this period. Given the time of year, manufacturers who define their order position as strong outnumber those who think their order position is weak. Lastly, manufacturers who think their stocks of finished products are too small constitute a majority over those who define their stocks of finished products as too large.

Year-on-year manufacturing output higher in September

A couple of weeks ago, CBS reported that the average daily output generated by Dutch manufacturing industry in September 2015 was up 0.7 percent from September 2014. This is mainly due to production growth in the pharmaceutical and electrical industry.

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.