Manufacturing stocks shrink further

Manufacturers had reduced their stocks of finished products by more than 14 percent in January relative to January 2009. The decrease in January was somewhat larger than in the five preceding months. The index stocks of finished products (base year 2005=100) stood at 96.7 in January. The decline of stocks in January coincided with the strong increase in manufacturing turnover in that month.

Stocks of finished products manufacturing industry (volume)

Manufacturers slightly more negative about their stocks of finished products

The Business Sentiment Survey for the Manufacturing Industry provides a first indication of the development of the index stocks of finished products in the near future. In this survey, manufacturers are invited to define their current stocks of finished products as too large (negative), normal or too small (positive) in relation to projected sales. These results are available two months earlier than data on the stocks of finished products.

Manufacturers’ opinions on their stocks deteriorate slightly in February and March 2010. Manufacturers considering their stocks too large marginally outnumbered those evaluating their stocks as too small. Manufacturers are clearly more optimistic about the level of their stocks than at the beginning of 2009. This optimism agrees with the reduction in their stocks during 2009.

Opinions on stocks of finished products