Economic outlook mixed in Netherlands, manufacturing weakens

The Dutch economy showed mixed indicators in November, as consumer sentiment continued to decline, while producer confidence slightly improved. The Business Cycle Tracer for November showed a more negative economic picture compared to October, with 11 out of 13 indicators performing below their long-term trend, according to Statistics Netherlands (CBS). Despite these challenges, there were some positive developments, including an increase in household consumption, exports, and investments.

In terms of consumer confidence, sentiment in December was more negative than in November, falling below the long-term 20-year average, while producer confidence showed a slight improvement, increasing from -1.8 in November to -1.6 in December. Despite the shift in sentiment, both consumer and producer confidence remained below the long-term average. Producer confidence, while improving slightly, was still below the 20-year average of -1.3.

In October 2024, household spending rose by 0.4 per cent year-on-year, supported by higher expenditures on goods and services. Exports also saw an uptick, rising by 1.7 per cent. Meanwhile, investments in tangible fixed assets were up by 5.2 per cent year-on-year, CBS said in a press release.

The manufacturing sector, however, continued to struggle, with output down by 2.5 per cent compared to October 2023. This marked the 16th consecutive month of decline. The output also fell by 0.6 per cent compared to September 2024, signalling persistent weaknesses in the sector.

The labour market showed mixed signs, with fewer hours worked and fewer job vacancies. Unemployment remained unchanged at 3.7 per cent of the workforce in November. Overall, despite an uptick in GDP growth of 0.8 per cent in Q3 2024, economic momentum remains fragile.

ALCHEMPro News Desk (HU)