Manufacturing output further up in July

According to Statistics Netherlands, the average daily output generated by Dutch manufacturing industry was 0.7 percent up in July 2014 from July 2013. In June, output declined by 1.3 percent after eight consecutive months of growth.

Mixed picture within sector manufacturing industry

Output generated by the sector electrical products and machinery and the sector (basic) metal products was respectively 6.8 and 6.4 percent higher in July than one year previously. In the sector food, drinks and tobacco, production was at the same level as one year previously, whereas output in the sector petroleum, chemical, rubber and plastic products fell by 1.6 percent. Altogether, these four sectors account for nearly three-quarters of manufacturing output.

Average daily output manufacturing industry (volume)

Short-term output developments vary considerably

Figures adjusted for seasonal variation and the effects of the number of working days provide a more reliable picture of short-term output developments. In July manufacturing output was up 1.9 percent from June.

Over the past months, the seasonally adjusted figures for 2014 have varied considerably. In February, manufacturing output reached the highest level in more than six years, followed by dips and peaks in the ensuing months. In July, manufacturing output was 3.3 percent below the level in February, but marginally above the average level over 2013.

Seasonally adjusted average daily output in manufacturing industry

Dutch manufacturers less positive, some improvement on German market

The production growth in July is consistent with the growing producer confidence in that month, but the mood among Dutch manufacturers deteriorated again in August, according to information published by Statistics Netherlands a few weeks ago. The Dutch manufacturing industry mainly exports to the surrounding countries and these countries are struggling with their faltering economies. Germany in particular is an important foreign market for the Netherlands. German producer confidence peaked in April and subsequently declined during the next four months and the growth rate of German manufacturing output also slowed down.  But early September DESTATIS, the German statistical office, reported a considerable output growth in July compared to July 2013.

More figures can be found in the dossier Business cycle.

For more information on economic indicators, the reader is referred to the Economic Monitor