Supplier confidence still positive, auto suppliers still skeptical

25.08.2010

According to the quarterly SupplierBusiness Confidence Index released on Aug. 23, suppliers to the automotive industry continue to be concerned about the long-term strength of the recovery and its stability, in spite of industry growth. Overall though, positive trends remain in place among suppliers, with all four elements of the index—New Orders, Production Volumes, Inventory levels and Employment—scoring over 50, suggesting they are in an upward trend.

Suppliers were asked for commentary on the orders and production, and responses made it clear that confidence is increasing with suppliers, with volumes appearing to stabilize. “However, there continues to be uncertainty as to whether this is due to inventory levels being so low that suppliers have spent the last six months catching up, or if there is genuine sustained growth in this sector,” said the report. “The acid test will come in the fourth quarter of 2010 and into 2011.”

In Europe, after results plateaued in the previous index, there now seems to be a greater fluctuation in the individual elements of the survey, as show by the fact that the growth of Production Volumes has been halted in the months since April. But, the report questions whether this is just “part ...
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