Manufacturing: Business Climate Recovers

The business climate in manufacturing recovered after last month’s decline. This was due to markedly more optimistic business expectations. A larger number of manufacturers expected fresh stimuli from international markets. Despite recent increases in demand, assessments of the current business situation deteriorated once again this month, but remained at a high level. Similarly, satisfaction with incoming orders also fell for the third month in succession. Inventory overhangs rose slightly, despite less frequent increases in production activity last month. In line with the favourable outlook, manufacturers ramped up their production plans markedly. They can be expected to continue to recruit more new staff in the months ahead, although to a slightly lesser extent than last month.