August 2019: A stable economic environment is required
The European foundry industry sentiment did not improve in August. Both, the assessment of the current situation and expectations for the coming six months have deteriorated slightly. By contrast, the moderate improvement in economic confidence in the Euro area, which is being recorded by the EU Commission, has received a positive boost. This will probably not indicate a turnaround. The improvement in sentiment is based on a thin foundation, as only the industry has seen an upward trend. The numerous uncertainties for the export-oriented foundry industry and its main customer industries remain unsolved. Instead, companies are still looking for orientation while the possible Brexit date approaches and international trade conflicts continue to arise.
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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