Manufacturers expect investments to fall in 2004

10/12/2004 09:30

Manufacturers expect investments to fall by 12 percent in 2004 compared to last year. If their expectations turn out to be correct, the lowest level in ten years will be reached. In the spring of 2004 manufacturers still expected investments to increase by 2 percent, according to figures published by Statistics Netherlands.

Investments postponed

In virtually all branches of Dutch manufacturing industry, mining and public utilities, projected investments for 2004 had to be adjusted downward, partly because investments were postponed to 2005. This is notably true for metal and electrotechnical products. In spring manufacturers in this sector still expected investments to grow by 23 percent, whereas six months later investment spending had fallen by 10 percent.

Marginal growth investment spending anticipated in 2005

Manufacturers anticipate a marginal increase in investment spending in 2005 compared to 2004. This growth will chiefly be effected by the producers of metal and electrotechnical products and the sector other manufacturing industry and partly concerns investments initially projected for 2004. In mining producers also expect the level of investments to pick up in 2005.

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