22 Apr European Foundry Industry Sentiment, March 2020: First impacts of COVID-19

Before the out­break of the coronavirus pan­demic, expect­a­tions indic­ated an end to the indus­trial slow­down. But in March the European Foundry Industry Sen­ti­ment Indic­ator decreased. The assess­ment of the cur­rent busi­ness situ­ation of the European foundries declined and expect­a­tions for the fol­low­ing six months dropped. This was in line with the decrease of the Busi­ness Cli­mate Indic­ator for the Euro Area, reflect­ing man­agers´ descending pro­duc­tion expect­a­tions.

This shows that the European Foundry Industry is feel­ing the con­sequences of the corona pan­demic. National gov­ern­ments and the EU have taken a vari­ety of steps in an attempt to con­tain the rapid spread of the COVID-19 virus. European foundries are facing busi­ness travel restric­tions and sup­ply short­ages, have intro­duced short-time work or have been even forced to stop pro­duc­tion com­pletely. In par­tic­u­lar, foundries sup­ply­ing the auto­mot­ive industry face post­pone­ments of orders. How severe will this external shock be? This will ulti­mately depend on when the eco­nomy finds its way back to some nor­mal­ity.

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.

Please find the chart below, additional information can be found at www.caef.eu.

 

CAEF Press Release 22 April 2020

Angela Mason
Angela Mason
angelamason@cmfed.co.uk