Aug Dutch inflation 3.6%: CBS estimate; economic picture more negative

The economic picture was more negative in August than it was in July, according to the CBS Business Cycle Tracer, a tool used to monitor the state of the Dutch economy. Eleven out of the 13 indicators in the tracer for May performed below their long-term trend.

The mood among consumers remained unchanged in August compared to the previous month, but producers were less negative. Consumer and producer confidence were below the long-term average for the past two decades.

Households spent 0.7 per cent less year on year (YoY) in June this year, adjusted for price changes and shopping-day pattern. They spent more on services, but less on goods.

In June, the total volume of goods exported (adjusted for the number of working days) was down by 1 per cent YoY.

In June this year, the calendar-adjusted output of Dutch manufacturing was 4.9 per cent lower YoY. YoY output also contracted in the preceding eleven months. After adjusting for seasonal and calendar effects, manufacturing output rose by 0.8 per cent in June month on month.

In the first seven months, approximately 43 per cent more businesses were declared bankrupt than a year earlier.

A total of 370,000 people aged 15 to 74 years were unemployed in July this year, the same number as in the previous month. The unemployment rate was 3.6 per cent, unchanged from May and June.

At the end of the second quarter (Q2) this year, there were 401,000 vacancies, almost 10,000 fewer than in the previous quarter. The number of vacancies has been falling for almost two consecutive years, with only a slight increase in Q1 2024.

According to the first estimate from CBS, gross domestic product (GDP) increased by 1 per cent quarter on quarter in Q2 2024. The growth was mainly due to goods exports. Public consumption and investments also made a positive contribution. The increase in goods exports is also related to the growth seen in the manufacturing sector.

Fibre2Fashion News Desk (DS)