The long-term average over the past two decades is 0.6. Producer confidence reached an all-time high (10.9) in February 2018 and reached an all-time low (-28.7) in April 2020. Pessimism prevails among Dutch manufacturers since April 2020.
|year||month||balance (average of the component questions)|
Opinions on future output less negative
Dutch manufacturers have never been more negative about their future output than in April. In May, expectations have improved but are still at the second lowest level ever. Manufacturers are also slightly less negative about their stocks of finished products, while their opinions on the order position deteriorated further.
All component indicators of producer confidence are negative. Manufacturers who anticipate output decline over the next three months outnumber those expecting output growth. More manufacturers consider their order position to be weak rather than strong, given the time of year. There are more manufacturers who define their current stocks of finished products as too large rather than too small.
|year||month||balance (balance % positive and % negative answers)|
Producer confidence slightly less negative in most sectors
In most sectors of the industry, producer confidence is less negative than it was in April, particularly in the transport equipment industry. Entrepreneurs in the electrotechnical products and machinery industry were the least negative. However, confidence levels in the food, beverages and tobacco industry as well as in the paper and printing industry deteriorated further.
|May 2020 (average of the component questions)||April 2020 (average of the component questions)|
|Electrotechnical products and machinery||-20||-27.1|
|Timber and building materials||-21||-25.2|
|Food, beverages, tobacco||-22.2||-18.3|
|Paper and printing||-24||-20.7|
|Textiles, clothes, leather||-30.1||-38.9|
Manufacturing output 2.5 percent down in March
In March 2020, the average daily output generated by the Dutch manufacturing industry was 2.5 percent down on March 2019. Output showed a year-on-year decrease of 1.3 percent in the preceding month.
Confidence among German manufacturers slightly less negative
Germany is an important foreign market for the Dutch manufacturing industry. According to the Business Climate Index of the IFO Institute, confidence among German manufacturers is slightly less negative in May than it was in April. This is mainly due to slightly less negative opinions about future output. Manufacturers’ opinions on the current situation have deteriorated. In March, the average daily output generated by the German industry contracted by 14 percent year-on-year, as reported by Destatis.