Dutch manufacturing sees first growth in over 18 Months

The Netherlands' manufacturing sector recorded a slight recovery in January 2025, marking the first increase in output in more than a year and a half, according to new data from Statistics Netherlands (CBS).

The calendar-adjusted output of the sector was 0.5 per cent higher than in January 2024, suggesting a potential shift in industrial performance. More than half of the country’s major industrial sectors produced more than they did a year earlier.

A clearer short-term trend emerges when adjusting for seasonal effects and working-day variations. On this basis, manufacturing output increased by 1.0 per cent in January 2025 compared to December 2024, indicating a modest but positive rebound, as per CBS.

Manufacturers in the Netherlands were less pessimistic in February compared to January, particularly regarding their stock of finished products. This slight improvement in sentiment aligns with trends in Germany, a key market for Dutch exports. According to Eurostat, German business confidence in the manufacturing sector also improved in February, suggesting a potentially broader industrial recovery in Europe.

Manufacturing output, when adjusted for seasonal and working day effects, often shows volatility. The sector faced a sharp downturn in early 2020, hitting its lowest point in May of that year due to pandemic-related disruptions. However, a strong recovery followed until mid-2022, after which output entered a downward trend that continued until recently.

ALCHEMPro News Desk (HU)