June 2023: Dif­fi­cult times and weak expectation

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.


CAEF Con­tact:

Till­man van de Sand
Sec­ret­ary Com­mis­sion for Eco­nom­ics & Statistics
phone: +49 211 68 71 — 301
mail: tillman.vandesand@caef.eu

General Secretariat
CAEF - The European Foundry Association

Hansaallee 203
40549 Düsseldorf

tel: +49 (0)211 6871 217
fax: +49 (0)211 6871 40217
e-mail: info@caef.eu