Indications coming from manufacturers do not validate optimism about short-term production developments in the sector, particularly among producers of investment goods, where orders are deteriorating and inventories are building up. The picture is brighter among producers of consumer goods, where de-stocking is reported. All in all, the soft patch in the manufacturing sector still seems to be in place, hit by weakness in the German and Chinese economies and by the supply chain disruptions caused by developments in the Red Sea and the Suez Canal.
Confidence in services took a breather after two consecutive increases, mainly reflecting a deterioration in current business activity. Order books seem to be holding up decently, but employment expectations are showing some sense of fatigue.
