Manufacturing output 12.5 percent down in May

Largest output decline in transport equipment industry

Of the eight largest industries within manufacturing, the transport equipment industry again recorded the strongest output contraction. However, the decline was somewhat smaller than in the previous month, due to the fact that a number of large factories in the automotive industry re-opened partially. Almost all industries saw their output decline on an annual basis, except the machinery, tobacco and other 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 April and May of 1.9 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 continues to recover

In June, Dutch manufacturers were again less negative than in the previous month. This is mainly due to notably improved expectations on future output.

Germany is an important foreign market for the Dutch manufacturing industry. According to the Business Climate Index of the IFO Institute, producer confidence was significantly less negative in June than it was in May. This is entirely attributable to notably improved opinions on future output. It is the strongest improvement in expectations on record. However, opinions on the current situation remained negative. In May, the average daily output generated by the German industry contracted by almost 24 percent year-on-year, as reported by Destatis.