Dutch producer confidence improving

29/06/2016 15:00
According to Statistics Netherlands (CBS), confidence among Dutch manufacturers is improving. The producer confidence indicator stood at 5.4 in June, the highest level in more than 5 years. The measurement was conducted in the first half of June, that is prior to the UK referendum about EU membership.

Since October 2014, optimism has prevailed among Dutch manufacturers, especially among those in the wood and construction industry.

Confidence among manufacturers is still well above its long-term average over the past two decades (0.5). The business confidence indicator reached an all-time high (9.4) in January 2008, but dipped to an all-time low (- 23.5) more than one year later.

Producer confidence in manufacturing industry (seasonally adjusted)

More optimism about order books, future output and stocks

In June, Dutch manufacturers were more positive about their order books and their future output over the next three months. Their opinions about their stocks of finished products also improved.

All three component indicators of producer confidence are also positive in June. Manufacturers who anticipate output growth over the next three months, for example, 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 their counterparts in the petroleum and chemical industry. Manufacturers in the wood and construction industry are particularly positive about their order books and their future output. Producers in transport equipment, however, are somewhat negative, mainly due to their future output prospects.

Producer confidence by sector (seasonally adjusted)

Sustained growth manufacturing output

The average daily output generated by Dutch manufacturing industry was 2.8 percent up in April 2016 from April 2015. The increase was marginally higher than in March. Output realised in the transport equipment industry and the electrical appliances industry was considerably up in April. In machinery, manufacturing output fell dramatically.

German producer confidence improves further

Germany is an important foreign market for the Dutch manufacturing industry. German manufacturers were also more positive in June than in May. Daily output generated by German manufacturing industry was also higher in April 2016 than in the same month last year.

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