Producer confidence close to record high

29/11/2017 15:00
© Hollandse Hoogte
According to Statistics Netherlands (CBS), confidence among Dutch manufacturers stood at 9.1 in November, up from 8.2 in October. This is the highest level since February 2008. In January 2008, producer confidence reached a record level of 9.4. Producer confidence in Germany is also at a record high.

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.

More positive about order books

In November, the mood among Dutch manufacturers about their order books improved. They were also slightly more positive about stocks of finished products. However, manufacturers were slightly less positive about their future output in the next three months.

All component indicators of producer confidence are positive for November 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 a year, optimism has prevailed across all subsectors of the manufacturing industry. Most optimistic in November were producers in the transport equipment and in the wood and construction industry.

Manufacturing output over 5 percent up in September

The average daily output generated by the Dutch manufacturing industry was over 5 percent up in September 2017 compared to the same month last year. The growth rate was higher than in August. For two years now, manufacturing output has continually been above the level of the same period year-on-year. The strongest growth was seen in the transport and electrotechnical equipment industry.

German producer confidence again 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 November. Manufacturers were markedly more positive about their future output. The average daily output generated by the German manufacturing industry was 4.3 percent higher in September 2017 than one year previously.

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