Dutch industry produced slightly more in December than in the same month a year earlier, reports Statistics Netherlands (CBS). Average daily production was 0.5% higher in the last month of 2022. For the full year, average production was approximately 6% higher than in 2021.
The fact that the industry has produced a little more is a flattering picture, according to BNR in-house economist Han de Jong. ‘Production growth stabilized sharply in the latter part of the year. This is in line with the countries around us.’ For example, Dutch industry contracted in November for the first time in more than a year and a half, according to Statistics Netherlands.
Production in energy-intensive sectors, in particular, has declined. “The worst in the chemical industry,” says De Jong. Production was more than 18 percent lower, while rubber and plastic production was 11 percent lower. ‘Machine construction has flourished enormously, but now the growth has stopped. This appears to be a reaction to the previous burst of growth.
Just over half of all manufacturing classes produced more in December than in the same month a year earlier. Among the largest industries, the repair, maintenance and service business class once again recorded the fastest growth. Also the production of the means of transport industry returned to growth, while the production of chemical products recorded the sharpest contraction.
Germany
The Netherlands is heavily dependent on Germany in several ways. As a supplier and also in terms of the sales market, the Germans are of great importance for the Dutch economy. Just like in our country, production in the neighboring country is decreasing. “In Germany, industry is even more important to the economy than here,” says De Jong. “Production is even weaker than here and the German economy has almost come to a standstill because of this.”
The main culprit for this is rising energy prices, thinks De Jong. Rising interest rates and high inflation also play a role, albeit to a lesser extent. ‘According to the German CBS, industry uses a quarter of total energy consumption.’
The German economy has taken a lot of hits in recent years, due to an ‘accumulation of problems’. The automotive industry, in particular, has been in dire weather since 2018. First because of the diesel gate, then because of new emission standards and most recently the shortage of chips. Partly because of this, the Dutch and German economies are increasingly out of step, thinks De Jong.
Positive mood
According to Statistics Netherlands, the mood among entrepreneurs in the manufacturing industry improved slightly in January. They were particularly more positive about the order position than they were a month earlier. In Germany, an important sales market for Dutch industry, business confidence in the sector also increased further in January. This is because they are more positive about current trading conditions and less negative about future conditions.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
