Producer confidence less positive

29/11/2016 15:00
Statistics Netherlands (CBS) says confidence among Dutch manufacturers deteriorated somewhat, due to the fact that manufacturers are less positive about their future output. The producer confidence indicator stood at 3.4 in November, down from 4.3 in October. Manufacturers in the wood and construction industry are most positive.

Since October 2014, optimism has prevailed among Dutch manufacturers. Confidence among Dutch manufacturers is significantly above its long-term average over the past two decades (0.6). 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)

Less positive about future output

In November, Dutch manufacturers are less positive about their future output over the next three months than in October. They were also somewhat less positive about their order books, but more optimistic about their stocks of finished products.

In November, all three component indicators of producer confidence were positive. Manufacturers anticipating output growth during 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 constitute a majority over those who think the opposite. The number of manufacturers who define their stocks of finished products as too small outnumber those who define them as too large.

Producers in the wood and construction industry most positive

Producers in the wood and construction industry are most optimistic, followed by their counterparts in the textiles, clothes and leather industry. Confidence also improved most noticeably among these manufacturers. Confidence, on the other hand, deteriorated most noticeably among manufactures in the paper and printing industry. This is mainly based upon their future output prospects.

Producer confidence by sector (seasonally adjusted)

Growth manufacturing output continues

On a year-on-year basis, the average daily output generated by Dutch manufacturing industry was 2.4 percent up in September 2016. The growth rate was slightly higher than in August. Over the past twelve months, manufacturing output has continually been above the level of the same month one year previously.

German producer confidence also has fallen

Germany is an important foreign market for Dutch manufacturing industry. German manufacturers were also less optimistic in November than in October. The average daily output generated by German manufacturing industry was 1.6 percent higher in September 2016 than in September 2015.

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