Manufacturers slightly less positive

Producer confidence in manufacturing industry declined slightly and was at 3.0 in November 2005. This is 1.3 point lower than in October. Despite the small decrease confidence stays high. After February 2001 producer confidence has only been higher in October.

Producer confidence is the mood indicator for the manufacturing industry. The figure consists of three component indicators: expected production over the next three months, manufacturers’ opinions on the stock of finished products and the order position.

Manufacturers are again a bit more optimistic in November about their order position and the stock of finished products, but they are less positive about the future output level. Yet manufacturers who intend to scale up production in the next three months outnumber those who expect to have to reduce output.

Although producer confidence is high, there are no plans to expand employment. On the contrary, 17 percent of manufacturers expect staff reductions in the next three months, whereas only 7 percent intend to hire personnel.

Producer confidence in manufacturing industry