Dutch manufacturers expressed less negativity in August 2024 compared to July, as producer confidence rose slightly from minus 2.7 to minus 1.9, according to Statistics Netherlands (CBS). This modest improvement reflects manufacturers’ more optimistic views on their order positions and stock levels. However, producer confidence remains below the 20-year average of minus 1.3.
While the overall producer confidence remains negative, August saw a notable improvement in manufacturers’ assessments of their order positions and current stocks of finished products. Additionally, manufacturers were more positive about expected output over the next three months, with those anticipating an increase in output outnumbering those expecting a decrease. This was the only component indicator that turned positive.
Two component indicators remained negative. Manufacturers were more likely to report weak order positions relative to the time of year, and a larger number described their current stock of finished products as excessive rather than limited. Despite these challenges, confidence improved across most manufacturing sectors, as per CBS.
In June 2024, the calendar-adjusted output of the Dutch manufacturing sector was 4.9 per cent lower than in June 2023. This marks the twelfth consecutive month of year-on-year output contraction. However, after adjusting for seasonal and calendar effects, manufacturing output showed a slight recovery, rising by 0.8 per cent compared to May 2024.
Producer confidence in August 2024 is still far below the all-time high of 10.4 recorded in October 2021 and remains above the all-time low of minus 31.5 observed in April 2020 during the height of the COVID-19 pandemic.
ALCHEMPro News Desk (DP)
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