Manufacturing: cautious business expectations

In manufacturing, the business climate once showed slight deterioration, marking the sixth consecutive decline in the indicator. Participants were less satisfied with their current business situation, which however is still at an excellent level. In addition, a somewhat larger share of respondents expects a further deterioration in the coming six months. On the other hand, there were hardly any reports of a decline in demand, and in terms of order backlogs growth was again reported by some firms. Nevertheless, there was somewhat less satisfaction with the current status of order books. In sharp contrast to the previous month, companies again reported an increase in production volumes, leading to an increase in finished goods inventories, which are still slightly below average in a long-term comparison. In view of this, the expansionary production plans for the coming months have been reduced somewhat, even though new foreign sales opportunities are seen somewhat more frequently.