Producer confidence

Producer confidence is a mood indicator showing the direction, in which manufacturing output is likely to develop. The indicator is an unweighted arithmetic average of three (component) indicators from the business sentiment survey manufacturing industry, i.e. anticipated industrial activities, manufacturers’ opinions about their order positions and their opinions on their stock levels. For the calculation of producer confidence, these underlying (component) indicators are adjusted for seasonal variation and bias.

The term ‘anticipated industrial activities’ refers to the balance percentage with respect to the question whether manufacturers think their output over the next three months will grow, remain stable or diminish.

Their opinions about their order position (order books, months of work ahead) refers to the balance percentage with respect to the question whether manufacturers think order position is too large, normal or too small, given the time of year.

Their opinions about their stocks of finished products refers to the balance percentage with respect to the question whether manufacturers think their stocks of finished products are
too large, normal or too small, given anticipated sales developments.

Back to article