04 Jul European Foundry Industry Sentiment on a Downward Trend, but still Bearable.
The slowdown in the European Foundry Industry Sentiment in June was less marked than that seen in the Business Climate Indicator, reports the European Foundry Association, CAEF. Both the assessment of the current status and the expectations for the next six months had eased compared to the previous month. The decline in the foundry sentiment was driven by lower confidence in all cast materials. This was particularly due to the weaker performance of the foundries´ main customer industries – the automotive and general engineering sector – in comparison to the high levels seen during 2018.
Moreover, it is thought that the ongoing trade dispute between the US and EU could have an impact on the mood of the European foundry industry in the coming months as the US administration has proposed placing tariffs on some cast components. This shows that the geopolitical uncertainties are not decreasing.
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 CAEF each month and is based on survey responses from the national associations of the European foundry industry, so the Cast Metal Federation for the UK. 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.
Please find the chart plus combined with additional information at www.caef.eu.