According to the flash estimate, inflation in April was 5.2%. This quick estimate is calculated based on incomplete source data. In March, consumer goods and services were 4.4% more expensive than twelve months earlier. Regular consumer price index (CPI) data will be released on May 11.
An inflation rate of 5.2% in April 2023 means that prices of consumer products are 5.2% higher than in April 2022. April’s inflation rate of 5.2% is therefore no higher than the rate inflation rate of 4.4% in March. “For everyday life, it looks like inflation is coming down,” says chief economist Peter Hein van Mulligen.
Business trust
Manufacturing entrepreneurs were less positive in April. Producer confidence rose from 4.0 in March to 3.0 in April, according to Statistics Netherlands. This is mainly due to the fact that entrepreneurs have been less positive about the backlog and expected activity.
Producer confidence is above its long-term average of 1.3. Business confidence reached its peak in November 2021 (12.7). The lowest value (-28.7) was recorded in April 2020.
Less positive on order placement and expected activity
Entrepreneurs were less positive about the backlog and expected production over the next three months. Their valuation of finished product inventories hasn’t changed.
Positive two sub-indicators of producer confidence. The number of entrepreneurs who consider the order book large prevailed over the number of entrepreneurs who consider the order book too small, given the time of year. The number of entrepreneurs predicting an increase in production in the next three months was higher than the number of entrepreneurs predicting a decrease in production.
However, one sub-indicator tested negative. Fewer entrepreneurs considered their inventories of finished products too small than those who considered their inventories too large.
Producer confidence is declining in more than half of industrial asset classes
In more than half of major industrial sectors, producer confidence deteriorated in April. As in previous months, entrepreneurs from the electrical engineering and machinery sectors were the most positive.
Fewer and fewer producers expect an increase in sales prices
Every month, the business survey in the Netherlands also asks questions that are not part of producer confidence, including about sales prices. In April 2023, 17.7% of producers expected sales prices to increase in the next three months, 6% expected sales prices to decrease. The balance of positive and negative responses thus stands at 11.7 per cent. This is the lowest level since December 2020. As of January 2023, the balance was still 45.6%.
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.
