The European Foundry Industry Sentiment Indicator (FISI) faces its fourth decrease in a row. Rating of 2.1 index points lower than in May, the index reaches a value of 98.6 points in June. Hence, the value is now below the initial value of 100.0 in 2015.
It is alarming that the negative trend is thus intensifying.
While order backlogs are still high but being worked off, new orders seem to collapse across several sectors. Meanwhile, a turnaround is not in sight particularly regarding the expectations for the upcoming 6 months.
While, in the last months, the development of steel and iron foundries on the one hand and non-ferrous metal foundries on the other hand was contrary due to statistical base effects, foundries of all materials groups are currently turning negative in their assessment of the business situation compared to the previous month.
The Business Climate Indicator (BCI) decreases by 0.13 points in June and brings the index to 0.06 points. The value is therefore now almost back to late pandemic times end of the year 2020, when it turned negative. Overall, the selling price expectations for the month ahead are decreasing together with the current production level and the order book levels.
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 CAEF the European Foundry Association 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