2024 and the associated uncertainties are casting their shadows ahead: FISI drops to 90 index points.
This December, the European Foundry Industry Sentiment Indicator (FISI) records a notable decrease, marking a downturn in the index to 90 points. This adjustment negates the positive
development observed in November, as the index experiences a decline of 1.6 points, settling at 90.0 compared to 91.6 the previous month.
As we conclude the year 2023, it becomes evident that the foundry industry continues to face challenges. The FISI, which commenced the year at 103.1 index points in January, now reflects the impact of persistent challenges such as high energy prices, geopolitical tensions and conflicts, (skilled) labour shortages, and uncertainties surrounding the availability of raw
materials. These factors collectively exert substantial pressure on foundries across Europe. Despite struggling with these ongoing headwinds, the foundry industry exhibits remarkable
resilience. Foundries throughout Europe are navigating through the complexities, demonstrating their adaptability in the face of adversities. It is worth noting that the absence of
subsidies and support from national and European policymakers adds to the industry’s burden. In contrast, competitors in Asia and the United States find themselves in relatively
advantageous positions, encountering fewer challenges in these areas.
Meanwhile the Business Climate Indicator (BCI) stands at ‑0.45 index points in December. This marks the sixth consecutive time that the BCI is below the critical threshold of 0 index
points. The index decreased once again by 0.06 points from ‑0.39 in November. This month the negative BCI can be attributed as in the previous month mainly to the situation of the
assessment of export order-book levels. The ongoing geopolitical tensions in both the Middle East and Ukraine are playing a pivotal role in propelling this development.
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.
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