In a significant blow to the Dutch manufacturing sector, the latest data released by the Central Bureau of Statistics (CBS) reveals that the average daily production of the country’s industrial output plummeted by 7.7% in June compared to the same period last year. This announcement underscores a continuing downward trend, with production figures also exhibiting declines in the preceding months of 2023.
The figures, provided by the CBS, detail the challenges faced by various segments within the Dutch industrial landscape. Of note, the machinery industry experienced the most substantial decline in production among major sectors, marking a concerning contraction. Interestingly, the repair and installation of machinery bucked this trend, showing a significant increase in production.
Fluctuations Across Industrial Segments:
- Repair and Installation of Machinery: Significant Increase
- Transport Equipment: Decrease
- Food Products: Decrease
- Metal Products: Decrease
- Chemical: Decrease
- Electrical and Electronic Devices: Decrease
- Rubber and Plastic: Decrease
While the statistics indicate an overall decline in production, the month of June witnessed a slight uptick in production by 0.7% when considering factors such as seasonality and working day effects. However, it’s essential to note that production figures can exhibit notable fluctuations when these adjustments are taken into account. Historical data shows instances of rapid decline, as observed in the spring of 2020, followed by a subsequent upswing until May 2022. The recent reversal of this trend is noteworthy.
The sentiment among industry producers, as gauged by surveys, has been persistently negative for the fourth consecutive month. This sentiment decline is primarily attributed to less optimistic views regarding order backlogs.
The Netherlands heavily relies on Germany as a crucial export market for its industrial products. However, the confidence among German producers also waned in July, as reported by Eurostat. Notably, the average daily production of the German industry was 0.4% lower in June compared to the previous year. Furthermore, there was a 1.2% decline in German production from May to June, according to data from Destatis.
These interconnected trends between the Dutch and German manufacturing sectors highlight the broader economic challenges facing these neighboring countries.
https://www.cbs.nl/nl-nl/nieuws/2023/32/productie-industrie-bijna-8-procent-lager-in-juni