European Foundry Industry Sentiment, August 2024: FISI Sees a Slight Decline in August
In August 2024, the European Foundry Industry Sentiment Indicator (FISI) experienced a slight
decline, falling to 94.8 index points. This represents a decrease of 0.7 points compared to the
previous month, where the index stood at 95.5.
This decrease can be partly attributed to the ongoing complex macroeconomic situation across
Europe. Despite some improvement in energy prices and raw material costs, both of which are
no longer at their peaks, the overall economic outlook remains somewhat stagnant. Many
economies across Europe continue to move sideways rather than demonstrating significant
upward momentum, leading to a noticeable lack of new orders.
Adding to this uncertainty is the upcoming U.S. presidential election in 2024, which is causing
many customers to delay decisions until the outcome is clear. This is particularly relevant for
industries with global supply chains, as the potential policy shifts could have far-reaching
implications. Similarly, the formation of the new EU Commission is also creating a wait-andsee
attitude among customers, as businesses remain cautious about future regulatory
changes within the European market.
Despite this downturn, there is a modest sense of optimism in the outlook. The current market
conditions, however, highlight the ongoing challenges that the foundry industry in Europe must
contend with.
Meanwhile, the Business Climate Indicator (BCI) continued its downward trend in August, slipping from -0.61 to -0.62 index points. This slight decline underscores the ongoing difficulties in the business environment, as the BCI remains significantly below the neutral threshold of 0 index points.
The drop in the BCI for August can be linked to various factors. Firstly, businesses are expressing a more subdued outlook on order book levels, indicating weakening demand prospects within the industry. This decline in orders raises concerns over production capacity in the coming months. Additionally, the typical summer lull in economic activity has further compounded the slowdown. Lastly, ongoing uncertainty about the composition and policies of the upcoming EU Commission has led to increased caution among businesses, contributing to the overall subdued sentiment. Taken together, these elements paint a more cautious picture of the business climate, with companies remaining hesitant about both short-term and long-term economic prospects.
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 enclosed or combined with additional information at www.caef.eu.
Background information on CAEF:
CAEF is the umbrella organisation of the national European foundry associations. The organisation, founded in 1953, has 22 European member states and works to promote the economical, technical, legal and social interests of the European foundry industry. At the same time, CAEF implements activities which aim at developing national foundry industries and co-ordinating their shared international interests. The General Secretariat is situated in Düsseldorf since 1997.
CAEF represents 4 400 European foundries. Nearly 260 000 employees are generating a turnover of 39 billion Euro. European foundries are recruiting 20 000 workers and engineers per year. The main customer industries are e.g. the automotive, the general engineering and the building industries as well as the electrical engineering industry. No industrial sector exists without using casted components.
Further information at www.caef.eu( https://www.caef.eu/european-foundry-industry-sentiment-58/))