Confidence among producers rose in August

In August 2024, the manufacturing sector displayed a mix of positive and negative trends, according to the latest data.

The overall manufacturing output slightly decreased by 0.1 percent in June 2024 compared to May 2024, after adjusting for seasonal and calendar effects. This slight decrease was also observed when compared to June 2023, with a decrease of 0.2 percent.

However, a more positive outlook was seen in the expected output for the next three months. In August, a higher percentage of manufacturers indicated that their output would increase rather than decrease, with a balance of 6.1.

Despite this positive forecast, producer confidence in August was generally low. The average confidence level was -2.2, which was higher than the previous month's -4.9, but still indicated a pessimistic outlook.

The electrotechnical products and machinery industry had the lowest confidence level in August, with an average of -6.2. The transport equipment industry followed closely behind with an average of -7.6. The textiles, clothes, leather industry, the food, beverages, tobacco industry, and the timber and building materials industry also had negative confidence levels, with averages of -7.2, -1.6, -0.6, and -0.6 respectively.

Interestingly, the paper and printing industry had the most negative confidence level among all sectors in August, with an average of -7.7. Despite this, in August 2023, manufacturers in this industry that were positive and contributed to positive producer confidence included companies such as Koenig & Bauer, Heidelberger Druckmaschinen, and Mondi.

On the bright side, manufacturer confidence in the 'other industries' sector was positive in August, with an average of 5.5. The metal industry's confidence level was negative in August, with an average of -0.4.

Another positive sign was that a higher percentage of manufacturers described their current stock of finished products as large rather than small in August. Manufacturers were also less negative about their order positions and current stocks of finished products in August compared to July.

However, a higher percentage of manufacturers indicated that their order position was weak rather than strong for the time of year. This suggests that while manufacturers have more stock, they may be facing challenges in selling their products.

Overall, producer confidence was negative in almost all industrial sectors in August, indicating a generally cautious outlook for the manufacturing sector.