In March 2024, the European Foundry Industry Sentiment Indicator (FISI) experienced another increase, up to 95.8 index points, says the European Foundry Federation (EFF, formerly CAEF). This development reflects the third consecutive increase for the FISI, the index experiences an increase of 1.8 points, settling at 95.8 compared to 94.0 in the previous month.
The current positive trend in the European foundry industry can be attributed to two key factors, one statistical and the other economic. Firstly, it appears that the European Foundry Industry Sentiment Index has bottomed out in previous months, indicating a shift towards an upward trajectory. Secondly, several foundries across Europe have scaled back their production capacities over the past year. This tense situation throughout 2023 has begun to alleviate in some regions, particularly as there has been a noticeable reduction in raw material prices.
Collectively, the industry eagerly anticipates a boost from policymakers in Brussels. However, it is important to note that this much needed stimulus may not materialise until Autumn, when the newly elected European parliamentary and commission members commence their duties. In the interim, EFF says it is imperative for industry stakeholders to remain vigilant and proactive in addressing ongoing challenges. By doing so, they can ensure the industry’s resilience in the face of adversity.
Meanwhile the Business Climate Indicator (BCI) increased noticeably and now stands at -0.30 index points. This marks the ninth consecutive month that the BCI has lingered below the critical threshold of 0 index points. The positive trend in the BCI primarily stems from the improvement of the assessment of export order book levels, but is still a reflection of persistent challenges in this aspect. Additionally, the selling price expectations for the months ahead have increased in recent months and supports the increase of the BCI. www.caef.eu