Manufacturing output 11 percent down in April

Largest output decline in transport equipment industry

Of the eight largest industries within manufacturing, the transport equipment industry recorded the strongest output contraction. This is mainly due to the fact that in the automotive industry virtually all factories were closed in April. Almost all industries saw their output decline on an annual basis, except the machinery and pharmaceutical industry.

Downward trend

A more accurate picture of short-term output developments is obtained when figures are adjusted for seasonal effects and the working-day pattern. After adjustments, a decrease is seen in manufacturing output between March and April of 8.1 percent.

Adjusted for seasonal and working-day effects, manufacturing output is seen to fluctuate significantly. From mid-2014 until the beginning of 2018, the overall trend was upward. Subsequently, the trend has been downward.

Producer confidence recovering slightly

On account of the COVID-19 crisis, in April 2020 producer confidence plummeted to its lowest level since the start of the producer confidence survey in 1985. Confidence among Dutch manufacturers recovered slightly in May. Expectations about future output were still unprecedentedly negative, but to a lesser extent than in April.

Germany is an important foreign market for the Dutch manufacturing industry. According to the IFO Institute, confidence among German manufacturers was slightly less negative in May than in April. This is entirely due to the fact that entrepreneurs were less negative about their future output. In April, the average daily output generated by the German manufacturing industry was 31 percent lower than in the same month last year. This is reported by Destatis.