Dutch industry production is declining for the ninth month in a row. According to Statistics Netherlands, production shrank by 6 percent in March compared to the same month last year. “The industry has many ripple effects on the rest of the economy,” says BNR’s in-house economist Han de Jong.
Major downer for Dutch industry: ‘Worst figure since pandemic’
5 min 3 sec
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Three-quarters of industrial sectors produced less in March than the same month last year. For the time being, this image of the industry makes the economic recovery vulnerable, says De Jong. ‘It’s a huge setback. This is the worst figure since June 2020, when the corona pandemic had just started.’ Month on month, the figure is also quite negative. The figure for February was adjusted downwards.
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The figures are particularly disappointing because the Purchasing Managers Index, which is compiled by the Nevi, had actually improved considerably in recent months. ‘Then you expect production to also pick up.’ Statistics Netherlands also has a figure on producer confidence in the industry, which shows much less improvement than Nevi’s figure. ‘That is more in line with what is currently happening in the industry.’
Economic recovery is becoming fragile
The pain is mainly in building materials, mechanical engineering and basic materials. Industry is not the largest sector in the economy, but it is very important. Moreover, the industry often has spillover effects to other parts of the economy, says De Jong. ‘I expected a better grade.’
‘I expected a better grade’
GDP growth will still be stronger this year than last year, De Jong expects. Purchasing power has improved and with it consumer spending. ‘But the industry is absolutely not participating in this for the time being.’
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