Producer confidence hardly changes

© Hollandse Hoogte
According to Statistics Netherlands (CBS), confidence among Dutch manufacturers stood at 8.2 in October, down from 8.5 in September. Dutch manufacturers were slightly less positive about their future output.

The confidence indicator is well above its long-term average in the past two decades (0.7). Business confidence reached an all-time high (9.4) in January 2008, but dipped to an all-time low (-23.5) more than twelve months later. Since October 2014, optimism has prevailed among Dutch manufacturers.

Producer confidence in manufacturing industry (seasonally adjusted)
 balance
2013 N-0.3
2013 D0.1
2014 J0.7
2014 F-0.1
2014 M1.1
2014 A0.3
2014 M0.7
2014 J0.7
2014 J1.2
2014 A0
2014 S-0.2
2014 O2
2014 N2.4
2014 D3.4
2015 J2.8
2015 F2
2015 M1.4
2015 A3.3
2015 M4.1
2015 J4.6
2015 J3.7
2015 A3.5
2015 S3.8
2015 O2.4
2015 N4
2015 D3
2016 J3.2
2016 F3.1
2016 M3.9
2016 A4.7
2016 M4.4
2016 J5.4
2016 J5.1
2016 A1.2
2016 S3.4
2016 O4.3
2016 N3.4
2016 D4.7
2017 J6
2017 F7
2017 M7.8
2017 A8.3
2017 M6.1
2017 J7.2
2017 J6.6
2017 A5.4
2017 S8.5
2017 O8.2

Mainly less positive about future output

In October, Dutch manufacturers were mainly less positive about their future output in the next three months. Their mood about stocks of finished products also deteriorated, but their mood about their order books improved.

All component indicators of producer confidence are positive for October 2017. Manufacturers anticipating output growth over the next three months outnumber those expecting output decline. More manufacturers consider the number of orders they receive to be large, rather than small, given the time of year. The number of manufacturers defining their stocks of finished products as too small is also larger than those who define them as too large.

Producers in transport equipment industry most positive

Already for almost a year, optimism has prevailed across all subsectors of the manufacturing industry. Most optimistic in October were producers in the transport equipment and in the wood and construction industry.

Producer confidence by sector (seasonally adjusted)
 balance
Transport
equipment
18
Wood and
construction
17.9
Electrotechnical products
and machinery
13.2
Paper and printing12
Textiles,clothes,leather11.1
Metal7.5
Petreoleum,chemical,rubber,plastic6.7
Food,drinks,tobacco0.5

Manufacturing output almost 4 percent up in August

Average daily output generated by the Dutch manufacturing industry was almost 4 percent up in August 2017 on August 2016. The growth rate was slightly higher than in July. For almost two years, manufacturing output has continually been above the level of the same month one year previously. The strongest growth was seen in the transport equipment industry.

German producer confidence at a new record high

Germany is an important foreign market for the Dutch manufacturing industry. Confidence (i.e. the IFO index) hit a new record high in October. Manufacturers were markedly more satisfied with their ongoing business. Average daily output in the German manufacturing industry was over 5 percent higher in August 2017 than one year previously.

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