Dutch product prices drop for 1st time in 2 years in Apr 2023

Output prices are strongly affected by crude oil price developments. In April 2023, a barrel of North Sea Brent oil cost over €76, 22 per cent less than one year previously. In March, the average price of a barrel stood at nearly €74, 27 per cent less than in the same month last year. Prices of petroleum derivatives were down by 21.3 per cent YoY in April; they were up by 21.2 per cent in March, Statistics Netherlands (CBS) said in a press release.

Producer confidence among Dutch manufacturers was also down in May 2023. It declined from 3.0 in April to 2.1 in May. This was largely because manufacturers were less positive about order positions. Currently exceeding the long-term average of 1.3, producer confidence reached an all-time high at 12.7 in November 2021 and an all-time low in April 2020 at -28.7.

Manufacturers were mainly less positive about order positions. They were also less positive about future output in the next three months. Their opinion about current stocks of finished products was more negative.

Two component indicators of producer confidence were positive. The majority of manufacturers consider their order position to be strong rather than weak, given the time of year. Furthermore, manufacturers anticipating output to increase over the next three months outnumber those expecting a decrease.

However, there was one negative component indicator. More manufacturers define their current stock of finished products as too large rather than too small.

In most major manufacturing industries, producer confidence deteriorated in May. In March 2023, the average daily output of the Dutch manufacturing industry was 4.0 per cent lower than in March 2022. Output also contracted YoY in the two preceding months of 2023.

Germany is an important market for the Dutch manufacturing industry. In May, German entrepreneurs were more negative about the business climate, according to the Business Climate Index of the ifo Institute. They were considerably more negative about their future business situation and also less positive about their current situation. The average daily output generated by the German manufacturing industry was up by 3.6 per cent YoY in March, Destatis reported.

ALCHEMPro News Desk (NB)