Manufacturers expect to invest substantially less this year

• All sectors of manufacturing negative about investment in 2009
• Investment spending expected to remain stable in 2010

Companies in the Dutch manufacturing industry expect to invest 10 percent less in 2009 than in 2008. This is the outcome of a survey of investment expectations held by Statistics Netherlands this autumn. The expected fall in investment is in line with the sharp drop in manufacturing production in the first three quarters of the year and the lower capacity utilisation.

Lower investment spending is expected across all branches of manufacturing. Companies in the petroleum industry foresee the largest decreases. They anticipate investment spending to be nearly one quarter lower in 2009 than in 2008. Manufacturers in the food, drinks and tobacco industry are the least pessimistic, they expect to invest 4 percent less. Within the manufacturing industry the metal and electrical engineering sector spends most on investment. This sector expects to invest 5 percent less in 2009.

Manufacturing companies expect a slight fall in investment in 2010, namely 1 percent compared with 2009. Some branches expect to invest less than this year, while other sectors are more positive. The food, drinks and tobacco sector expects investment spending to grow by 12 percent next year. The chemical industry on the other hand expects investment spending to be 16 percent down on this year. Companies in metal and electrical engineering are the most pessimistic. They say investment will be as much as 22 percent down on 2009.