Economic outlook somewhat less negative in mid-September

The CBS Business Cycle Tracer is a tool used to monitor the state and the course of the Dutch economy and is based on 13 key macro-economic indicators. Together, these provide a coherent macro-economic picture based on CBS figures which are being published over the past month or quarter. It does not necessarily represent the situation at the level of of individual households, businesses or regions.

Both consumer and producer confidence less negative

In September, consumer confidence showed marginal improvement compared to August. In addition, confidence among Dutch manufacturers is less unfavourable for the fourth consecutive month. Both producer and consumer confidence are positioned below their long-term averages.

Household consumption, investments and exports down

In July 2020, the total volume of goods exports shrank by 0.6 percent year-on-year. The contraction was lower than in the previous four months. Exports of metal and chemical products decreased in particular.

The volume of investments in tangible fixed assets was 4.5 percent down in July 2020 relative to the same month last year. This contraction is smaller than in the previous three months and mainly due to lower investments in buildings and machinery.

In July 2020 consumers spent 6.2 percent less than in July 2019. The decline is smaller than over the previous four months. Consumers again spent less on services but more on goods.

Manufacturing output almost 6 percent down in July

In July 2020, the average daily output generated by the Dutch manufacturing industry was 5.8 percent down on July 2019. The year-on-year decrease is smaller than in the previous three months.

Lowest number of bankruptcies in 21 years

In August, the number of corporate bankruptcies, adjusted for court session days, declined by 32. The number of bankruptcies in August was the lowest in 21 years.

House prices up by 8.2 percent in August

In August 2020, prices of owner-occupied dwellings (excluding new constructions) were on average 8.2 percent higher than in the same month last year. This is the largest price increase in over one and a half years.

Significant drop in number of hours worked

Due to government support measures, job losses were still relatively limited in Q2 at -2.7 percent, but the number of hours worked by employees and self-employed fell significantly and ended at a total of 3.2 billion hours in Q2 2020. Adjusted for seasonal effects, this is 5.7 percent lower than one quarter previously.

At the end of June, the number of unfilled job vacancies stood at 200 thousand. This was 26 thousand less than in the previous quarter, when the decline stood at 60 thousand. In a span of six months, the number of vacancies therefore declined by 30 percent, but is still above its long-term average of approximately 165 thousand.

In August 2020, 426 thousand people were unemployed (according to the definition of the International Labour Organisation (ILO)), equivalent to 4.6 percent of the labour force. Unemployment rose by an average of 32 thousand per month over the period June through August.

In Q2 2020, turnover at temporary employment agencies fell by 15.2 percent. Relative to one year previously, turnover was down by 16.6 percent.

8.5 percent GDP contraction in Q2

According to the second estimate conducted by CBS, gross domestic product (GDP) contracted by 8.5 percent in Q2 2020 relative to the previous quarter. The decline was mainly due to falling household consumption, while investments and the trade balance also fell significantly. Relative to one year previously, GDP contracted by 9.4 percent.

On Friday 13 November 2020, CBS will publish the first estimate of GDP and employment over Q3 2020.