After five consecutive quarters of decline, manufacturing turnover improved in the third quarter of 2013. The number of bankruptcies decreased and manufacturers tend to be more optimistic.
Export market performs well
For the first time since early 2012, Dutch manufacturing industry realised turnover growth. Turnover generated in the third quarter of 2013 was more than 1.5 percent up from one year previously. The export market, accounting for nearly 60 percent of total manufacturing turnover, grew by 3 percent relative to one year ago. Turnover generated on the domestic market remained stable, after having declined in the three preceding quarters. The higher turnover was partly due to the fact that the third quarter had an extra working compared to the same period last year.
Turnover developments Dutch manufacturing industry
Not all branches in manufacturing industry report turnover growth
The electrical engineering and machinery branch accounted for part of the growth in the third quarter. Turnover was nearly 10 percent up from last year. Manufacturers of food, drinks and tobacco products generated a turnover growth by nearly 9 percent. Turnover did not grow across all branches in manufacturing industry. Petroleum, chemical, rubber and plastic products, for example, faced more than 3 percent turnover loss.
Turnover four largest branches in Dutch manufacturing industry, 3rd quarter 2013
In the third quarter, 172 businesses active in the sector manufacturing industry went bankrupt, the lowest number since the third quarter of 2011, but still distinctly above the level prior to the economic recession at the end of 2008. In the third quarter of 2008, for example, only 93 manufacturing companies filed for bankruptcy.
Bankruptcies in sector manufacturing industry
Manufacturers less pessimistic about 4th quarter
Producer confidence has risen over the last quarters: manufacturers are less pessimistic about their projected output and their order portfolios. They are also less negative about the economic climate in the fourth quarter.