According to a Federation of Industry (FOI) industry survey for the month of October, manufacturing was characterised by ‘below normal’ order book levels and disappointing production expectations.
Business confidence among manufacturing firms declined substantially to reach its worst levels since November of last year, according to the survey. The survey also showed that overall, the volume of total and export order books declined steadily over the past four months.
At the same time, stocks of finished products remained relatively stable whilst the number of firms predicting a fall in selling prices increased for the second consecutive month.
In contrast to other industrial groupings, the Investment Goods Sector registered a positive industrial confidence as total order book levels were substantially less negative than in the previous month, showed the FOI survey. Nonetheless, a decline in export order books accelerated further to reach its worst levels ever registered since last February.
Correspondingly, production expectations scaled back to the lowest levels ever registered since last December whilst selling price expectations turned negative after staying in positive territory for seven months according to the survey. On the other hand, employment expectations remained good.
Consumer goods manufacturers were more pessimistic about their general business situation than in the previous month as they suffered a further blow in total and export order book levels, and reported substantially higher levels of stocks of finished products. As the FOI said it expected, industrial confidence for the sector worsened significantly to reach its lowest levels ever registered since November last year.
As in the previous month, production expectations and employment expectations remained in negative territory whilst no changes in balance were reported for selling price expectations.
Industrial confidence for intermediate producing firms registered a strong dip in October compared to the previous month. Industrial confidence for the sector has been in negative territory since last August and has now reached its worst levels ever registered since November last year.
FOI said this marked a significant deterioration in total and export order books and a high level of stocks of finished products. The outlook, according to the federation, remains negative as production expectations scaled back substantially and, at the same time, employment expectations and selling price expectations remained in negative territory.
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