Manufacturing: Business Outlook Is Cautious

The business climate in manufacturing fell once again this month, only falling just short of the figure for the same period last year. Developments in demand were once again less dynamic and manufacturers were less satisfied with their current business situation, which remains at a very high level. With inventories low the order backlog was assessed as marginally more favourable. At 87.7% capacity utilisation was slightly above January’s level, but significantly higher than the long-term average. Export expectations were almost as favourable as last month, and survey participants expected their export activity to continue to increase on balance. In line with these expectations, production plans were upwardly adjusted once again. Manufacturers also upscaled their employment plans.