Fading optimism in manufacturing industry

Hungarian manufacturing companies were in optimistic mood in the first half of the year. Several former indicator records had been beaten in the test when the business cycle sentiment indicator reached 66 points. This index has fallen to 60 points during the summer of 2015 which still reflects good mood although there are some uncertainty as well. The confidence index which is more based on objective business data (like inventory level, stock of order etc.) never followed the sentiment indicator, mainly due to lower stock of orders. Inventory levels are low since the crisis and domestic demand is higher than used to be, it still did not reach the level of international demand. Due to that the confidence index has decreased to 49 point from 53 points and that is under the line of 50 points which means stagnation. The index hits a two years record low level.