Dutch manufacturers extremely pessimistic

The mood among Dutch manufacturers deteriorated for the third month in a row. After drops by more than 5 points in September and October, the producer confidence index dropped 3 points in November. Producer confidence is now -9.1, nearly the lowest level ever. With -9.4, the index was only lower in April 1993 and June 2003.

Producer confidence consists of three component indicators: expected output in the next three months, producers’ opinions on their order books and their opinions on their stocks of finished products.

Manufacturers were substantially more pessimistic with respect to their future output. Their opinions on their order positions were also much more negative. Manufactures’ opinions on the stock of finished products improved somewhat, but are still negative.

The number of manufacturers reporting a decrease in output was significantly higher than the number reporting an increase. Manufacturers also reported a decrease of orders received. They were much more pessimistic about employment in manufacturing than one month previously. The order position index (orders received expressed in months of work) diminished slightly. With a score of 111.6, the index retains its high level.

Producer confidence in manufacturing industry