Second quarter economic growth slightly higher than previously estimated

Figures from Statistics Netherlands put Dutch economic growth at 2.6 percent in the second quarter of 2007 compared with the same quarter last year. The second estimate of economic growth is 0.2 of a percentage point higher than the first estimate published on 14 August.

Economic growth was slightly lower in this quarter than in 2006 because of the drop in production of natural gas. This resulted in weaker growth for consumption by households and exports of goods. Other factors also resulted in a substantially lower growth of fixed capital formation.

Upward adjustment

The upward adjustment of 0.2 of a percentage point was mainly the result of higher than previously estimated production by all goods producers and in the care  sector. As a consequence net exports and government consumption were higher. Growth of re-exports and fixed capital formation on the other hand were lower than previously estimated.

Quarter-on-quarter growth only 0.3 percent

Compared with the preceding quarter, economic growth was 0.3 percent in the second quarter of 2007. This was previously estimated at 0.2 percent. This is the lowest quarter-on-quarter growth for two years.

Slower growth nearly across the board

Both the growth in exports of Dutch products and re-exports slowed down compared with 2006. The increase in household consumption was smaller than in 2006, mainly as a result of lower consumption of natural gas. Consumer spending on durable goods such as consumer electronics and cars, and on hotels and restaurants and transport and communication still had much higher than average growth rates, however.  Higher spending on care spurred on government consumption.

Although investment in machines, company vehicles, company buildings and computers increased substantially, the growth of total fixed capital formation decreased. Two reasons for this are the lower number of aircraft delivered, and the smaller amount received in royalties on patents and licences than in the same quarter last year.

Highest growth for construction, care and commercial services 

The construction industry had the highest production growth rate of all sectors of industry, at 5 percent. Commercial services and care both produced 4 percent more. Within commercial services, temp agencies, wholesale and business services grew by most. The hotel and restaurant sector is also picking up noticeably. Following two extremely successful quarters, the growth in manufacturing fell to 2.5 percent. Gas production was again considerably lower than in 2006, as a result of the warm spring weather.

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