Price drop manufactured products levels off

30/09/2009 15:00

Factory gate prices in Dutch manufacturing industry were 12.5 percent lower in August 2009 than in August 2008. The price drop was less substantial than in July, when prices of manufactured products were 15 percent lower than one year previously. Since November 2008, prices of manufactured products have continuously been lower than twelve months previously.

Factory gate prices

Factory gate prices

Prices of petroleum-related products were 31 percent down on August 2008, as against 44 percent in July. 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 nearly 34 percent down on one year previously. In the preceding months, prices dropped even more. Mid-2008, oil prices soared to a new record high.

North Sea Brent oil, euro/barrel

North Sea Brent oil, euro/barrel

Prices of products manufactured by the chemical and basic metal industry were considerably lower. Prices dropped by approximately 25 percent relative to one year previously. Factory gate prices in the food processing and the paper industries dropped by more than 7 percent. In a few branches, prices were higher in August than twelve months previously. This applies, for instance, to drinks, tobacco products and furniture.

Although factory gate prices were down on one year previously, they were higher than in the preceding month. Prices increased 1.5 percent in August compared to July. The increase was largely accounted for by price developments in the petroleum processing and refining industry. In August, prices on the foreign market rose more rapidly than on the domestic market.