The FISI (Foundry Industry Sentiment Indicator) index is published monthly by the European foundry association EFF (formerly CAEF) based on responses from member organizations, including the Fédération Forge Fonderie, on the business climate in the foundry sector (cast iron, steel and non-ferrous) to date and their expectations for the next six months.

Download the FISI results for June and July 2024

After three consecutive months of slight decline, the FISI index stood at 94.5 points in June before rising to 95.5 points in July, close to its level in March 2024. While this increase is welcome, the trend should be treated with caution. The general economic environment remains complex, and the foundry industry continues to face significant challenges.

First of all, most of the economies of the major European countries are experiencing a phase of stagnation, even if there have been some signs of recovery since July, notably in the automotive sector and therefore for the European foundries concerned.

Furthermore, European industry continues to face a high level of uncertainty, fuelled by unpredictable market trends and investor hesitation, although here too there is some relief and the outlook is less uncertain than initially expected.

Last but not least, it is worth highlighting the important role played by subsidies granted to foundries in third countries, enabling them to reduce their costs compared with their counterparts in the European Union.

At the same time, the BCI index declined slightly, from -0.39 to -0.46 points in June and then -0.61 in July, remaining for the last 11 months below the critical threshold of 0 index points, reflecting persistent difficulties in the business environment.

Its recent decline can be attributed to several factors. Firstly, there has been a deceleration in production indicators, which had previously shown signs of improvement. Secondly, order book levels are a cause for concern, particularly in the export sector, given the continuing uncertainties surrounding the dynamics of international trade. Finally, uncertainties surround the next European Commission and the potential changes linked to the results of the European elections which, depending on the country, may create an uncertain environment and put the brakes on investment.

Source: CAEF press releases (https://www.caef.eu/european-foundry-industry-sentiment-56/ and https://www.caef.eu/european-foundry-industry-sentiment-57/)