Dutch manufacturers far less positive

30/08/2016 15:00
Statistics Netherlands (CBS) says confidence among Dutch manufacturers has fallen considerably. The producer confidence indicator stood at 1.2 in August, down from 5.1 in July, the most dramatic fall in five years. However, optimism still prevails among Dutch manufacturers and their confidence remains above its long-term average over the past two decades (0.5).

Since October 2014, optimism has prevailed among Dutch manufacturers. 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 negative about future output, less positive about order books and stocks

In August, Dutch manufacturers are more negative about their future output over the next three months than in July. They were also less positive about the size of their order books and their stocks of finished products.
One of the three component indicators of producer confidence is slightly negative in August. Manufacturers anticipating output to decline over the next three months, for example, marginally outnumber those expecting output to grow during this period.
The other two component indicators are positive. 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 as too large.

Manufacturers of textiles, clothes and leather products most optimistic

Manufacturers in the textiles, clothes and leather industry are most optimistic, followed by their counterparts in paper and printing. Manufacturers in the textiles, clothes and leather industry are very positive about their future output. Producers of transport equipment, on the other hand, are negative, in particular about their order books.

Producer confidence by sector (seasonally adjusted)

Steady growth manufacturing output

Early this month, CBS reported that the average daily output generated by Dutch manufacturing industry was 1.6 percent up in June 2016 from the same month last year. The increase was more substantial than in May. Output realised in the sector transport equipment again grew considerably in June, but output in the electrical appliances industry slumped.

Producer confidence in Germany also plummets

Germany is an important foreign market for Dutch manufacturing industry. The mood among German manufacturers was also less positive in August than in July. The output level of German manufacturing industry was higher in June 2016 than in June 2015.

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