𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗮𝗰𝘁𝘂𝗮𝗹 𝘀𝗼𝗳𝘁𝘄𝗼𝗼𝗱 𝘁𝗶𝗺𝗯𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗲𝗳𝗹𝗲𝗰𝘁𝗶𝗼𝗻 (𝗶𝗻𝘀𝗽𝗶𝗿𝗲𝗱 𝗯𝘆 𝗣𝗠𝗜 𝗼𝘂𝘁𝗰𝗼𝗺𝗲 𝗢𝗰𝘁𝗼𝗯𝗲𝗿)

𝗣𝗠𝗜:
Despite the fact that we aren’t experiencing a recovery in practice, we can still consider the October PMI figures positive.
Really? Well…only because the downward trend has slowed. We’re not falling further, but the decline is less severe.
Inventory reduction of materials continues at an unusually rapid pace. Weak global demand gives companies no reason to build up stocks, which puts additional pressure on the economy.
The industrial climate remains deflationary, and geopolitical tensions continue to weigh on global PMI figures. E.g. what effect will the US election have?
Hopefully, we are past the September low point. We see an improvement in business conditions in China, while the downturn in the US, as in the Eurozone, has eased. India, Spain, and Brazil topped the PMI growth rankings, while Austria, Germany, and France ranked lowest.
It seems we still have a long way to go on a slight upward path. Hopefully, interest rates at the end of the year will give this an additional small boost.

𝗧𝗶𝗺𝗯𝗲𝗿:
Cost pressures are increasing on the supplier side, while demand appears to be declining. Who would have thought the market was more enthusiastic in August than in October?
It’s an unpredictable sales market with significant pessimism on the buyer side. The German market, for instance, is feeling this more acutely, partly due to the closure of several VW factories. This negativity impacts sales in the wooden pallet and packaging industries, so we’re certainly not expecting an uptick from that sector before Christmas.
On the supplier side, cracks are starting to show in various regions, with some sawmills even facing potential closure as the highest cost. Price reductions across the board are not feasible and aren’t on most suppliers’ agendas. This is not only because most sawmills lack large stockpiles (because of a wide divided costumer base), but also because a lower price won’t solve the demand problem.
This is not a volume market, nor is it likely to become one anytime soon. As a result, many in the industry are closing up their activities earlier than usual this year.
…Until proven otherwise—next year will be better…. 😊