Dutch manufacturers remain optimistic

28/01/2016 15:00

According to Statistics Netherlands (CBS), confidence among Dutch manufacturers improved slightly in January. They were considerably more positive about their stocks of finished products and their order books. The producer confidence indicator rose from 3.0 in December to 3.2 in January. Manufacturers in the wood and construction industry are 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 more positive about stocks of finished products and order books

In January, Dutch manufacturers were more positive about their stocks of finished products and their order books, but less positive about their future output in the next three months.

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 during this period. Given the time of year, manufacturers who think the number of orders they received is large outnumber those who think the opposite. Lastly, manufacturers who define their stocks of finished products as too small still constitute a majority over those who define their stocks of finished products as too large.

Producers in the wood and construction industry most optimistic

Manufacturers in the wood and construction industry are most optimistic, followed by the paper and printing industry. Manufacturers in the wood and construction sector are particularly positive about their projected output. Manufacturers of transport equipment, on the other hand, are more negative than in December.

Producer confidence by sector (seasonally adjusted)

Year-on-year manufacturing output higher in November

Several weeks ago, CBS reported that the average daily output generated by Dutch manufacturing industry in November 2015 was 2.3 percent up from November 2014. This is mainly due to output growth in the petroleum, chemical, rubber and plastic industry.