Manufacturers more confident in June

29/06/2017 15:00
According to Statistics Netherlands (CBS), confidence among Dutch manufacturers stood at 7.2 in June, up from 6.1 in May. Manufacturers are much more positive about their order books.

Since October 2014, optimism has prevailed among Dutch manufacturers. The confidence indicator is considerably above the level of its long-term average over the past two decades (0.7). 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.

More positive about order books and future output

In June, Dutch manufacturers were distinctly more positive about their order books and their future output in the next three months. The mood about their stocks of finished products hardly changed.

All component indicators of producer confidence were positive in June. 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 is also larger than the number of manufacturers who define them as too large.

Manufacturers also positive about future employment

Manufacturers are also positive about future employment. In June the balance between manufacturers expecting employment to improve during the next three months and manufacturers anticipating staff cuts was more than 11. This balance of positive and negative answers is the highest in 27 years.

Producers in the textile and clothing industry most positive

Optimism prevails across all subsectors of manufacturing industry. Producers of textile, clothing and leather products are most optimistic in June, followed by their counterparts in the wood and construction industry.

Manufacturing output further up in April

The average daily output generated by the Dutch manufacturing industry was 2.4 percent up in April 2017 from April 2016. The growth rate was smaller than in March. For more than eighteen months, manufacturing output has continually been above the level of the same month one year previously. The most substantial growth was observed in the machinery industry.

German producer confidence marginally higher

Germany is an important foreign market for Dutch manufacturing industry. German manufacturers were slightly more positive in June than in May. In particular, they were more positive about their future output. The average daily output generated by German manufacturing industry was 2.2 percent higher in April 2017 than one year previously.

Sources

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