January 2021: European foundries start the new year with a positive momentum
After the European Foundry Sentiment Indicator (FISI) already closed the previous year with a positive signal, it increased by significant 1.1 index points in January. This increase represents the largest monthly growth since April 2018. The new level of 101.3 points is driven by both an improved assessment of the current situation and more optimistic expectations, with the first slightly outweighing the latter. It is noteworthy that this increase in both parameters applies to foundries in all three material groups ‑steel, ferrous and non-ferrous- for the first time since August 2018.
This is particularly promising since the data for the first time also address the difficulties regarding the vaccinations and discussions about the mutated virus variants. Meanwhile, the adoption of the cooperation agreement between the EU and the United Kingdom is likely to have had a positive effect.
The Business Confidence Indicator (BCI) also continues to recover. With an increase of 0.1 points, the index has risen for the eighth month in a row.
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.
Tillman van de Sand
Secretary Commission for Economics & Statistics
phone: +49 211 68 71 — 301