Negative month for manufacturing

According to the FOI Industry Survey, October was characterised by "below normal" order book levels for the manufacturing sector and disappointing production expectations.

Manufacturing firms also predict a fall in selling prices, and a continued rate of job losses that is somewhat less pronounced than that registered in the previous month.

Business confidence among manufacturing firms has also declined substantially to reach its worst levels since November of last year.

Overall, the volume of total and export order books has declined steadily over the past four months. At the same time, stocks of finished products remained relatively stable while the number of firms predicting a fall in selling prices increased for the second consecutive month.

Investment goods Sector

In contrast to other industrial groupings, the Investment Goods Sector registered positive industrial confidence as total order book levels were substantially less negative than in the previous month.

Nonetheless, the decline in export order books accelerated further to reach its lowest level since last February.

Correspondingly, production expectations scaled back to the lowest levels since last December and selling price expectations turned negative after staying in positive territory for seven months.

On the other hand, employment expectations remained good.

Consumer goods

Consumer goods manufacturers were more pessimistic about their general business situation than in the previous month as they suffered a further blow in total and export order book levels, and reported substantially higher levels of stocks of finished products.

As expected, industrial confidence for the sector worsened significantly to reach the lowest level since November of last year.

As in the previous month, production expectations and employment expectations remained in negative territory and no changes in balance were reported for selling price expectations.

Intermediate goods

Industrial confidence for intermediate producing firms registered a strong dip in October compared to the previous month.

Industrial confidence for the sector has been in negative territory since last August and has now reached its worst levels ever registered since November last year.

Again, this marked a significant deterioration in total and export order books and a high level of stocks of finished products. The outlook remains negative as production expectations scaled back substantially and, at the same time, employment expectations and selling price expectations remained in negative territory.

The October Industry Survey was carried out during the first three weeks of the month. There were 191 respondents to the October survey employing around 13,248 employees.