Economic situation improves further

The economic situation at the end of October was better than at the end of September. This is mainly the result of higher exports and fewer bankruptcies. The sentiment indicators for consumers and producers were also more positive. The heart of the scatter in the Business Cycle Tracer is located in the recovery stage. Twelve of the fifteen indicators in the Tracer are currently below their long-term average.

The Dutch economy continued to grow in the second quarter of 2010. The volume of the gross domestic product was up by 2.2 percent on the second quarter of 2009. The increase was clearly more substantial than in the first quarter. Compared to the preceding quarter the economy grew by 1.0 percent in the second quarter, taking calendar and seasonal effects into account.

The consumer confidence indicator rose in October. The mood among manufacturers improved somewhat. Providers of business services were optimistic about their future turnover.

Manufacturing output increased by 7 percent in August relative to one year previously. The volume of goods exports grew by more than 14 percent. Household spending also increased. The volume of private sector investments in tangible fixed assets was 1.5 percent down on August 2009. This decline was less substantial than in July, when private fixed capital formation was 3.6 percent down on one year previously.

In September, the capital market interest rate dropped to 2.5 percent, Dutch inflation stood at 1.6 percent. Selling prices in manufacturing industry were nearly 9 percent higher than one year previously.

The situation on the labour market has improved marginally. Seasonally adjusted unemployment dropped further to 412 thousand in September. The number of jobs in the second quarter increased by 0.3 percent relative to the first quarter. The number of hours worked in temp jobs increased by nearly 5 percent. At the end of June, the number of vacancies was approximately the same as at the end of March.

Gross domestic product (GDP)