Dutch manufacturers less optimistic

24/12/2015 15:00

According to Statistics Netherlands (CBS), confidence among Dutch manufacturers deteriorated in December. They were less positive, in particular about their future output. The producer confidence indicator fell from 4 in November to 3 in December. The decline is largely due to the (basic) metal industry. Manufacturers of food, beverages and tobacco products were most optimistic .

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 of - 23.5 more than one year later. Since October 2014, optimism has prevailed among Dutch manufacturers.

Producer confidence in manufacturing industry (seasonally adjusted)

Manufacturing industry considerably less positive about future output

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

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

Producers of food, beverages and tobacco products most optimistic

Manufacturers of food, beverages and tobacco products are most optimistic, followed by producers in the paper and printing industry. Manufacturers in the food sector are positive about their projected output levels. Producer confidence declined marginally, which is largely due to the fact that manufacturers of basic metal and metal products tend to be more negative in December than they were in November.

Producer confidence by sector (seasonally adjusted)

Year-on-year manufacturing output higher in October

Several weeks ago, CBS reported that the average daily output generated by Dutch manufacturing industry in October 2015 was 2.1 percent up from October 2014. This is mainly due to production growth in the electrical and chemical industry.