Producer confidence improves slightly in July

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© CBS
As of July 2022, the mood among Dutch manufacturers is slightly more positive. Producer confidence has increased from 8.1 in June to 8.4 in July, as reported today by Statistics Netherlands (CBS). This is due to the fact that manufacturers’ opinions on stocks of finished products have improved.

Producer confidence is significantly higher than the long-term average of 1.0. Producer confidence reached an all-time high (12.7) in November 2021 and an all-time low (-28.7) in April 2020.

Producer confidence manufacturing industry (seasonally adjusted)
yearmonthbalance (average of the component questions)
2018August5.9
2018September5.7
2018October5.9
2018November7.2
2018December7.5
2019January5.8
2019February6.3
2019March6.1
2019April6.7
2019May4.7
2019Juni3.3
2019Juli 3.9
2019August3.9
2019September3.3
2019October3.6
2019November2.8
2019December2.9
2020January2.5
2020February3.7
2020March0.2
2020April-28.7
2020May-25.1
2020June-15.1
2020July-8.7
2020August-5.4
2020September-4.8
2020October-5.6
2020November-3.8
2020December-0.4
2021January0.6
2021February0.1
2021March3.4
2021April6.5
2021May8.8
2021June11.5
2021July12.3
2021August9.6
2021September11.1
2021October12.3
2021November12.7
2021December10.2
2022January9
2022February8.5
2022March8.7
2022April10.8
2022May9.9
2022June8.1
2022July8.4

Manufacturers more positive about their stocks

Manufacturers’ opinions on stocks of finished products are more positive than in the previous month. Their opinions on future output remain the same and their opinions on order positions are less positive.

All component indicators of producer confidence are positive: manufacturers who anticipate output to increase over the next three months outnumber those expecting a decrease. In addition, the majority consider their order position to be strong rather than weak, given the time of year. More manufacturers define their current stock of finished products as too small rather than too large.

Confidence highest in electrotechnical and machinery industry

As of July, confidence is highest again in the electrotechnical and machinery industry. Just as in the petroleum and chemical industry and in the metal industry, confidence is also higher than in the previous month. In the other manufacturing industries, entrepreneurs are less positive than in June.

Producer confidence by sector (seasonally adjusted)
 July 2022 (average of the component questions)June 2022 (average of the component questions)
Electrotechnical products and machinery24.121.7
Transport equipment810.8
Timber and building materials5.411.4
Metal5.45.2
Textiles, clothes, leather5.38.1
Petroleum4.51.6
Paper and printing2.510.2
Food, beverages, tobacco2.23.5

Capacity utilisation rate unchanged

The industrial capacity utilisation rate stood at 84.2 percent at the start of Q3 2022. This is the same rate as in the previous quarter.

At the start of Q3 2022, more than 30 percent of the manufacturers indicated that they were hampered by staff shortages. This share has never been so high since the start of the survey in 2012.

Capacity utilisation rate, first month of the quarter
   Capacity utilisation rate (%) (%)
Quarter 484.1
2019Quarter 183.9
2019Quarter 284.3
2019Quarter 384.3
2019Quarter 484
2020Quarter 182.7
2020Quarter 274.2
2020Quarter 376.9
2020Quarter 479.2
2021Quarter 180
2021Quarter 281.7
2021Quarter 384.1
2021Quarter 483.8
2022Quarter 183.6
2022Quarter 284.2
2022Quarter 384.2

Manufacturing output 10 percent up in May

In May 2022, the average daily output generated by the Dutch manufacturing industry was up by 10.0 percent on May 2021. Output grew by 14 percent in the previous month.

Producer confidence in Germany plummets

Germany is an important market for the Dutch manufacturing industry. In July, German producer confidence according to the Business Climate Index of the IFO Institute plummeted. Companies were considerably more pessimistic about the coming six months and assessed the current situation as slightly less good. In May, the average daily output generated by the German manufacturing industry contracted by 1.4 percent year on year, as reported by Destatis.