Manufacturers much more confident in August

Producer confidence in Dutch manufacturing improved greatly in August, reaching -0.3. In July confidence was -3.7. Producer confidence is clearly recovering from the decline in June and July. Despite the improvement producer confidence is still below the average for the first six months of 2005.

Producer confidence is the mood indicator for the Dutch 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.

Producers are more positive about expected production in the coming three months than in July. The improvement is greatest among producers of consumer goods and smallest among producers of semi-manufactured goods. Dutch industrial entrepreneurs did not change their opinions on their order position or on their stocks of finished product.

One in fourteen entrepreneurs in Dutch manufacturing expects to raise selling prices, while one in fourteen expects to lower them. Among producers of semi-manufactured goods the number who expect a price rise is slightly higher than the number expecting lower prices. The reverse is true among producers of consumer goods.

One in seven entrepreneurs in Dutch manufacturing expects to cut their workforce over the coming months, only one in seventeen expects to expand their workforce.

Producer confidence in manufacturing industry