European Foundry Industry Sentiment: FISI Sees a Slight Decline in August

In August 2024, the European Foundry Industry Sentiment Indicator (FISI) experienced a slight decline, falling to 94.8 index points. This represents a decrease of 0.7 points compared to the previous month, where the index stood at 95.5.

This decrease can be partly attributed to the ongoing complex macroeconomic situation across Europe. Despite some improvement in energy prices and raw material costs, both of which are no longer at their peaks, the overall economic outlook remains somewhat stagnant. Many economies across Europe continue to move sideways rather than demonstrating significant upward momentum, leading to a noticeable lack of new orders.

Adding to this uncertainty is the upcoming U.S. presidential election in 2024, which is causing many customers to delay decisions until the outcome is clear. This is particularly relevant for industries with global supply chains, as the potential policy shifts could have far-rea ching implications. Similarly, the formation of the new EU Commission is also creating a wait-andsee attitude among customers, as businesses remain cautious about future regulatory changes within the European market.

Despite this downturn, there is a modest sense of optimism in the outlook. The current market conditions, however, highlight the ongoing challenges that the foundry industry in Europe must contend with.