Recession continues

The economic situation at the end of September was as unfavourable as at the end of August. Improvements and deteriorations balanced each other out. The heart of the scatter in the Business Cycle Tracer is located in the recession stage. Fourteen of the fifteen indicators are currently below their long-term average.

The Dutch economy shrank by 0.4 percent in the second quarter of 2012 compared to the same period one year previously. In the first quarter, the economy contracted by 0.8 percent. Taking calendar and seasonal effects into account, the economy grew by 0.2 percent in the second quarter compared to the preceding quarter. Quarter-on-quarter economic growth had also been 0.2 percent in the first quarter.

In September, the mood among Dutch consumers was slightly less negative than in August. Manufacturers, on the other hand, were more pessimistic.

In July, manufacturing output was approximately the same as in July 2011. The volume of private sector investments was also at the same level as one year previously. The volume of goods exports was more than 1 percent up on one year previously. Household spending on goods and services was 1.5 percent down on July 2011.

In August, prices of existing owner-occupied dwellings were on average 8.0 percent down on August 2011.The capital market interest rate was 1.8 percent, i.e. the same as in July. The inflation rate also remained stable (2.3 percent). Selling prices in manufacturing industry were 4.2 percent up on twelve months previously.

Seasonally adjusted unemployment increased further in August. The number of job vacancies and the number of jobs fell further in the second quarter. On the other hand, people worked more hours in temp jobs in the second quarter of 2012 than in the first quarter.

Gross domestic product (GDP)