Producer confidence improves

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Producer confidence among Dutch manufacturers has improved in April 2019.

CBS (Centraal Bureau Voor De Statistiek)

29/04/2019 15:00 © Hollandse Hoogte According to Statistics Netherlands (CBS), producer confidence among Dutch manufacturers has improved in April 2019. Confidence stands at 6.7 in April, up from 6.1 in March. Manufacturers are more positive about future output and their stocks of finished products.

The long-term average over the past two decades is 1.0. Producer confidence reached an all-time high (10.9) in February 2018 and an all-time low (-23.5) in February 2009. Optimism has prevailed among Dutch manufacturers since October 2014.

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More positive about future output and stocks

In April, Dutch manufacturers are more positive about their future output and their stocks of finished products than in the previous month. On the other hand, they are less optimistic about their order positions.

All three component indicators of producer confidence are positive. Manufacturers who anticipate output growth over the next three months outnumber those expecting output decline. More manufacturers consider their order position to be strong rather than weak, given the time of year. Furthermore, there are more manufacturers who define their current stocks of finished products as too small rather than too large.

Producers in the textile, clothing and leather industry most positive

In April, producers in the textile, clothing and leather industry are the most positive. However, pessimists again predominated in the transport equipment industry.

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Industrial capacity utilisation rate higher

At the beginning of Q2 2019, the industrial capacity utilisation rate stood at 84.3 percent. This is higher than in the previous quarter.

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Manufacturing output 0.5 percent up

The average daily output generated by the Dutch manufacturing industry was 0.5 percent up in February 2019 relative to the same month last year. The previous two months saw a decline in output. In February, output in the transport equipment industry showed the strongest year-on-year growth.

German manufacturers again less positive

Germany is an important foreign market for the Dutch manufacturing industry. According to the IFO index, in manufacturing the business climate index fell once again this month, to the lowest level in more than six years. This was due to both more pessimistic business expectations and less optimistic opinions on the current situation. In February, the average daily output generated by the German manufacturing industry was nearly 2 percent lower than in the same month last year.

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