The index measuring confidence rose from 3.0 in November to 3.3 in December, according to Statistics Netherlands. Producer confidence is therefore above the long-term average of 1.1. Business confidence reached its peak in November 2021 (12.7). The lowest value (minus 28.7) was recorded in April 2020.
Two-thirds
In about two-thirds of all sectors, producer confidence was higher in December than a month earlier. As in previous months, entrepreneurs from the electrical engineering and machinery sectors were by far the most positive.
Statistics Netherlands also notes that in Germany, an important sales market for Dutch industry, producer confidence has also improved. This was mainly because they were less negative about future business and more positive about the current business situation. The average daily output of German industry also increased.
The prices of industrial production are on the rise
The prices that Dutch industrial companies are charging for their goods were more than 17% higher in November than in the same month last year. Although the price increase has stabilized for the fifth consecutive month, the increase in selling prices remains “unprecedented” at 17.3%, reports Statistics Netherlands. In October, prices were almost 21% higher than twelve months earlier.
The sharp price increases are mainly due to the increase in energy, raw material and transport costs. According to CBS, the war in Ukraine is putting further pressure on prices. And that price pressure adds to the price increases that have occurred previously due to the rapid recovery of the economy after the corona crisis.
Prices were higher in November than a year earlier across nearly every business class in the industry. The price level has risen sharply, especially in the oil and chemical industries. In the first sector, the price level was more than 38% higher than a year ago, while in the chemical industry, prices increased by more than 16%. This is because manufacturing producer prices are closely correlated with oil prices, which have risen sharply. For example, a barrel of Brent crude from the North Sea cost around 89 euros in November. It was more than 26 percent higher than a year earlier.