Manufacturing: Confident Business Expectations

Although demand continued to grow, the surveyed companies in manufacturing did not evaluate their current business situation as positively as in the previous survey. However, the calculated balance is still well above the level 12 months ago. The firms still see growth potential for exports, albeit somewhat less frequently than in the previous month. The six-month business outlook is again more favourable, so that the overall business climate improved slightly. The areas of intermediate goods and capital goods reflected the overall trend. In the consumer goods sector, on the other hand, business prospects were somewhat less confident than in the previous months, so that the climate indicator declined here. Inventory surpluses in the overall manufacturing sector rose slightly, but were well below the long-term average. With favourable order backlogs, production plans were correspondingly expansive, although somewhat less marked than in the previous month. More companies reported restrictions on production, in particular caused by labour shortages, and the firms are planning additional hirings.