Manufacturing: Outlook continues to brighten

In manufacturing (including food and beverages) the business climate indicator rose again. For the seventh time in succession the sceptical responses regarding the business expectations declined. However, there was little change in the unfavourable business situation; in comparison to the previous month only a slightly smaller number of firms reported an unsatisfactory business situation. The decrease in demand has almost come to a standstill according to the responses of the survey participants, and finished goods inventories have again been reduced. Considerably fewer firms assessed order reserves as "too small"; the depth of orders on hand, however, at 2.3 months is still clearly below the previous year level (3.0 months). Equipment and machinery was utilised at a 71.8% rate, on average, which was lower than twelve months ago (86.0%), in comparison to the first quarter (71.3%), however, the utilisation rate has recovered somewhat. Firms' production plans call for fewer restrictions than in June. Only a small number of survey participants still expect the decline in export business to continue.