Manufacturers more negative in December

In December, producer confidence was below the long-term average of 1.0. It reached an all-time high (12.7) in November 2021 and an all-time low (-28.7) in April 2020.

Opinions on order positions and expected output deteriorated

Manufacturers’ opinions about the order positions and the expected output in the next three months deteriorated. They were also more negative about the current stocks of finished products.

All three component indicators were negative. Manufacturers anticipating output to decrease over the next three months outnumber those expecting an increase. More manufacturers define their current stock of finished products as large rather than small. The majority of manufacturers consider their order position to be weak rather than strong, given the time of year.

Producer confidence down in over half of industries

In more than half of the major manufacturing industries, producer confidence fell further in December. The decline was the highest in the textile, clothing and leather industries and in the electrotechnical and machinery industry. However, confidence was positive in both industries.

More than half of producers do not feel any consequences of increased interest rates

The monthly Business Survey Netherlands also includes occasional questions that are not related to producer confidence. For example, about the main consequence of the increased interest rate. More than half of the producers indicated that there are no or hardly any consequences, while more than a quarter of them thought that financing costs are higher and put pressure on profitability. Furthermore, just over 7 percent said that customers could borrow less, resulting in lower demand for their products. The remaining 10 percent mentioned other effects, such as more obstacles in obtaining financing. This question was also included in the survey of June 2023, showing similar results.

Manufacturing output over 11 percent down in October

Three weeks ago, CBS reported that in October 2023, the average daily output of the Dutch manufacturing industry was 11.1 percent lower than it was in October 2022. Year-on-year output contracted as well in the previous months of 2023. Relative to September, output fell by 0.5 percent in October.