Manufacturing: Business Climate Cools Down

The business climate in manufacturing cooled down marginally in June. The manufacturers surveyed were no longer quite as satisfied with their current business situation as last month. This may also partly have been due to slower growth in demand. Manufacturers’ business outlook remained optimistic and slightly above the long-term average on balance. With a trade war looming, however, fewer manufacturers expect fresh stimuli from foreign markets. Assessments of the order situation were less favourable than last month, but remained predominantly positive. Stocks of finished products remained low, which was partly due to the fact that few manufacturers ramped up production last month. However, more manufacturers expect to ramp up production and recruit additional staff in the months ahead.