No further slump factory gate prices manufacturing industry

30/07/2009 09:30

Dutch manufactured products were nearly 14 percent cheaper in June 2009 than in June 2008. The price drop was virtually the same as in May. In mid-2008, factory gate prices were still about 12 percent up on one year previously. Subsequently, price increases slowed down rapidly in a relatively short period. Since November 2008, manufactured products have been cheaper than twelve months previously.

Prices of products in the petroleum processing and refining industry in particular were lower in June. Petroleum-related products were over 40 percent cheaper. Price developments in this sector are seriously affected by the price of crude oil. The euro price of a barrel of North Sea Brent oil was over 42 percent lower than one year previously.

Products manufactured in the chemical and basic metal industry also were considerably cheaper than in June 2008. Prices dropped by 25 and 18 percent respectively. Factory gate prices in the food processing industry were 7 percent down, prices in the paper industry dropped by 6 percent. In a number of branches, prices were higher than twelve months previously. It concerns, for instance, tobacco products, furniture and drinks.

Factory gate prices were over 1 percent higher in June than in May. The increase was largely accounted for by price rises in the petroleum and tobacco industries. Price increases on the foreign market were larger than on the domestic market. June is the second month in a row to see an increase in factory gate prices, after a nine-month period of falling prices.

Factory gate prices

Factory gate prices