The industry is characterized by pessimism

29-06-2010 10:43 Falling order intake has again made the industrial indicators turn downwards. This appears of the economic indicator for June published by Statistics Denmark. This indicator measures the industrial expectations for the next three months.
The composite economic indicator was 5 in June against 8 in May. The indicator is based on expectations for the production in the coming three months and an estimate of the backlog and end-product warehouses.
The depressed sentiment is caused by the order decreases and the well-filled stocks, Statistics Denmark wrote.
On the other hand, the expectations for the production have increased from 16 in May to 18 in June.
However, the employment expectations have fallen from 4 to 3 after a month of May with the highest expectations for the employment since 2007.
Chief economist Jes Asmussen at Handelsbanken believes that the decrease was expected. He notes that the European debt crisis and the many fiscal measures result in worries about the economic activity.
At Danske Bank senior economist Christian Hilligsøe Heining notes that in spite of the decrease the expectations remain on the positive side.

»When the business confidence touched bottom in the beginning of 2009, the net decrease was -30. So there is no doubt that the business community indicates that the growing but fragile recovery moves in the right direction,« he wrote.

Also senior economist Niels Rønholt at Jyske Bank is relatively optimistic for the industry, in spite of the falling future expectations.
»Although today’s figures show a slight decrease in the industrial expectations we are still quite optimistic on the industry’s behalf.
»Many businesses have reduced their stocks during the crisis, but gradually it will become necessary to produce more. This is a trend we have seen in most of the world. The consumers have also begun to spend more, and this will further contribute to the need for more producttion.«