Manufacturers discouraged by Russia flap

The confidence of entrepreneurs in the industry has deteriorated in August, Statistics Netherlands announced today. The indicator of producer confidence fell 1.2 points.The decline in producer confidence is mainly due to a deteriorated opinion on the order portfolio, Statistics Netherlands reports. The Dutch industry mainly exports to neighboring countries. These countries are suffering from a faltering economy. The German and Italian economy shrank in the second quarter compared to the previous quarter, while the French economy posted zero growth. Last week Statistics Netherlands reported that consumer confidence also fell during August. The decline in both consumer and producer confidence can be linked to the tense international political situation.