Manufacturing: Climate Cools Down but Remains Exceptionally Good

In manufacturing the current business situation was assessed less positively and the corresponding indicator edged downwards from last year's record high. According to official statistics, production was ramped up by 3.6% last year. Despite the latest decrease in the index, manufacturers confirmed their comfortable position with exceptionally positive assessments of the current business situation. Although they expressed less confidence in their business expectations, a clear majority of manufacturers remained optimistic. Overall, this led to a marked deterioration in the business climate, which nevertheless remains very favourable. In terms of foreign business, participants still expect future developments to be positive, although to a lesser degree than recently. Far fewer manufacturers reported rising demand and their satisfaction with the current order situation diminished, albeit at a high level. Low finished goods stocks fell slightly, with fewer manufacturers reporting production increases.