Manufacturers less gloomy

In March 2010, the mood among Dutch manufacturers was less pessimistic than in February 2010. The producer confidence index rose from -5.0 to -3.1. This improvement was caused by the fact that manufacturers expect to step up their output in the months to come.

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

Manufacturers were far more optimistic about their production over the next three months than in the previous month. Especially producers of consumer goods were much more optimistic than in February. Their opinions on their order position deteriorated slightly. Opinions on the stocks of finished products also deteriorated marginally compared to February.

Dutch manufacturers reported no changes in the value of orders received in March. The order position index (orders received expressed in months of work) rose from 98.6 to 99.5. The number of manufacturers expecting higher output prices was larger than in February.

Manufacturers were just as negative about future employment in their branch as in February. Manufacturers expecting employment in their branch to increase in the next three months were still severely outnumbered by those expecting a downturn.

Producer confidence in manufacturing industry