While the coronavirus spread around Europe, the COVID-19 pandemic affected the health care and the socio-economic systems of the European countries to varying negative extents. Accordingly, the European Foundry Industry Sentiment continued to decline in April, after the mood already worsened in March. This was primarily due to the deterioration in expectations for the coming six months. Because COVID-19 has a strong impact on the automotive industry and machine manufacturers, European foundries are facing a sharp drop in incoming orders and consequently lower production. But the sentiment does not show the full scope of the challenging impacts, because the response rate this month was lower than usual. However, the Business Climate Indicator visualises the negative mood of industrial companies in the Euro Area: The BCI decreased dramatically to -1,81 points. But it remained above the record low of April 2009 during the financial crisis.
CAEF Foundry Industry Sentiment 042020CAEF Foundry Industry Sentiment 042020