August 2020: European foundries continue to face no positive outlook after the Covid-19 outbreak
After a sharp drop and its lowest level in May, the Business Climate Indicator for the euro area recovered for the third time in a row in August. However, the signs of recovery have so far not been reflected in the mood among foundries. The European Foundry Industry Sentiment (FISI), as a result, has recorded a negative sign for the sixth consecutive month since February. While the Business Climate Indicator (BCI) increased from ‑1.8 to ‑1.3 points in August, the FISI fell by another 0.5 points to 99.3. These partly opposing developments suggest that the Covid-19 pandemic and the structural changes in the automotive industry will affect the European foundry industry in the longer term.
The FISI – European Foundry Industry Sentiment Indicator – is the earliest available composite indicator providing information on the European foundry industry performance. It is published by the European Foundry Association (CAEF) every month and is based on survey responses of the European foundry industry. The CAEF members are asked to give their assessment of the current business situation in the foundry sector and their expectations for the next six months.
The BCI – Business Climate Indicator – is an indicator published by the European Commission. The BCI evaluates development conditions of the manufacturing sector in the euro area every month and uses five balances of opinion from industry survey: production trends, order books, export order books, stocks and production expectations.
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