After a sharp drop and its lowest level in May, the Business Climate Indicator for the euro area recovered for the third time in a row in August. However, the signs of recovery have so far not been reflected in the mood among foundries. The European Foundry Industry Sentiment (FISI), as a result, has recorded a negative sign for the sixth consecutive month since February. While the Business Climate Indicator (BCI) increased from -1.8 to -1.3 points in August, the FISI fell by another 0.5 points to 99.3.
These partly opposing developments suggest that the Covid-19 pandemic and the structural changes in the automotive industry will affect the European foundry industry in the longer term.