Manufacturing: Business Climate Continues to Cool

The business climate in the manufacturing sector continued to cool. Although the survey balances were below the previous year’s level, the long-term averages were still significantly exceeded. The reasons for the decline were primarily the assessments of the business situation, which on balance, however, can still be described as favourable. Business expectations declined only slightly and continue to be cautiously optimistic. A larger number of survey respondents expect new impulses from foreign markets. More frequent reports of production expansion were made, but weaker demand than in the previous month was registered. As a result, the balance of finished goods overhangs turned positive, but remained clearly below the long-term average. For the coming months, production plans are expected to be somewhat less expansive.