Producer confidence increases in Netherlands
Confidence stands at 7.2 in November, up from 5.9 in October. Producers are mainly more positive about their future output and their stocks of finished products.
The confidence indicator stands well above its long-term average over the past two decades (0.9). Producer confidence reached an all-time high (10.9) in February 2018 and an all-time low (-23.5) in February 2009. Optimism has prevailed among Dutch manufacturers since October 2014.
In November, Dutch manufacturers are more positive about their future output than last month. Manufacturers’ opinions about their order books and stocks of finished products have also improved.
All component indicators of producer confidence are positive. Manufacturers who anticipate output growth over the next three months outnumber those expecting output decline.
More manufacturers consider their order position to be strong rather than weak, given the time of year; and a majority of manufacturers define their current stocks of finished products as too small rather than too large.
Confidence has increased in all subsectors of the manufacturing industry except for the food, drinks and tobacco industry. In November, producers in the wood and building materials industry are the most positive for the ninth consecutive month.
The average daily output generated by the Dutch manufacturing industry was 2.9 percent up in September on the same month last year, a slightly less substantial increase than in August.
For three years now, manufacturing output has continually been above the level of the same period year-on-year. The strongest growth in September 2018 was seen in the metal industry.
Germany is an important foreign market for the Dutch manufacturing industry. According to the IFO index, German manufacturers are markedly less optimistic in November about both the current economic situation and their future output, as a result of growing uncertainty in the global market. In September, the average daily output generated by the German manufacturing industry was barely higher than in the same month one year previously. ■