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European foundries close the crisis year with a cautiously positive signal

After the European Foundry Sentiment Indicator (FISI) took a break in the recovery process in the previous month, it increased moderately again at the end of 2020, says the European Foundry Association (CAEF).

The increase of 0.8 points brings the index to a value of 100.2. While the development of the current situation is evaluated differently depending on the material, it is stable overall; expectations for the first six months of 2021 in particular have increased significantly. Despite the, in many cases, significantly intensified pandemic countermeasures, which are affecting life in large parts of Europe, foundries are slightly more optimistic about the next period. The vaccinations that began in December in most European countries raise hope for companies. Meanwhile, the difficulties in executing the vaccination campaigns, which had already become noticeable in some regions, were not anticipated when the data was collected, nor were possible influences from more contagious mutated forms of the virus. The long-awaited consensus in the negotiations on a trade and co-operation agreement between the EU and the UK will also be reflected in the data for future indicators.

Meanwhile, the Business Confidence Indicator (BCI) continues its recovery. In December, it increased by 0.2 points to an index value of -0.4 points and thus for the seventh time in a row. 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. 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. www.caef.eu