The long-term average over the past two decades is 0.4. Producer confidence reached an all-time high (12.3) in July 2021 and an all-time low (-28.7) in April 2020. In July, producer confidence is significantly higher than the long-term average.
|year||month||balance (average of the component questions)|
Manufacturers mainly more positive about order position and stocks
In July, manufacturers are more positive about their order position. Their optimism is at the highest level since 1985. Manufacturers’ opinions on stocks of finished products have also improved. Opinions on future output were roughly the same as in the previous month.
Manufacturers’ opinions on all three component indicators are positive. Manufacturers who anticipate output to increase over the next three months outnumber those expecting a decrease. More manufacturers consider their order position to be strong rather than weak, given the time of year. There are fewer manufacturers who define their current stocks of finished products as too large rather than too small.
Confidence highest in electrotechnical products and machinery industry
In July, producer confidence is highest in the electrotechnical products and machinery industry. However, it has improved the most in the transport equipment industry, mainly because manufacturers are considerably more positive about future output.
|July 2021 (average of the component questions)||June 2021 (average of the component questions)|
|Electrotechnical products and machinery||23.2||22.7|
|Timber and building materials||18.8||22.7|
|Textiles, clothes, leather||18.6||16.6|
|Paper and printing||13.7||7.7|
|Food, beverages, tobacco||6.6||5.2|
Capacity utilisation rate again higher
The industrial capacity utilisation rate stood at 84.1 percent at the start of Q3 2021. This brought the rate back to the level of 2019.
|Capacity utilisation rate (%) (%)|
Manufacturing output 16.5 percent up in May
In May 2021, the average daily output generated by the Dutch manufacturing industry was 16.5 percent up on May 2020. Output was up by 13.1 percent in the previous month. Compared to May 2019, growth stood at 3 percent. This made up for the loss in May 2020 due to the coronavirus crisis.
Producer confidence in Germany declining
Germany is an important foreign market for the Dutch manufacturing industry. In July, German producer confidence is less positive according to the Business Climate Index of the IFO Institute, due to a distinct decrease in optimism in companies’ expectations. In contrast, companies’ assessments of the current situation rose to their highest level since August 2018. Capacity utilisation managed to rise from 85.9 to 87.1 percent, a figure that is considerably higher than the long-term average of 83.5. In May, the average daily output generated by the German manufacturing industry grew by almost 21 percent year-on-year, as reported by Destatis. Compared to May 2019, however, output was still more than 7 percent lower.