Manufacturing at peak capacity

The Economic Tendency Indicator rose from 108.7 in June to 109.6 in July thanks to further strong signals from manufacturing. The indicator continues to show much stronger sentiment than normal in the economy.

The confidence indicator for the manufacturing industry climbed again in July and points to an unusually strong situation. The strongest signals came from pulp and paper and other transport equipment. Firms’ view of their current order books and stocks of finished goods contributed to the increase, as did their production plans over the next three months.

The confidence indicator for the building and civil engineering industry did not change appreciably in July and remains above the historical average, propped up by firms’ favourable view of their current order books.

The confidence indicator for the retail trade plummeted 8.2 points to below the historical average, due mainly to weaker signals from non-food retailers.

The confidence indicator for the service sector also fell marginally but continues to show a stronger situation than normal. The decrease was due to a slight downward revision of expectations for demand over the next three months.

Consumer confidence increased in July, taking the indicator close to 100, due mainly to a more positive view of whether now is a good time to make major purchases.