Manufacturing output 4 percent down in August

Output decline in majority of industries

In August, over two thirds of the industries again saw their output decline on an annual basis. However, contraction was smaller in slightly over half of those industries compared to July. Of the eight largest industries within manufacturing, the repair and installation of machinery industry recorded the strongest output contraction.

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, an increase of 0.7 percent is seen in manufacturing output between July and August.

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 rise in September

In September, confidence among Dutch manufacturers was less unfavourable for the fifth consecutive month. Manufacturers were mainly less negative about their order position.

Germany is an important foreign market for the Dutch manufacturing industry. According to the Business Climate Index of the IFO Institute, in September producer confidence also improved for the fifth consecutive month in Germany as well. Both opinions on future output and opinions on the current situation improved. In August, the average daily output generated by the German industry contracted by almost 12 percent year-on-year, as reported by Destatis. Contraction was just as large as in the previous month.