The volume of investments in tangible fixed assets was 0.5 percent up in May 2014 from May 2013. The growth of private and public sector investments continues, but has slowed down compared to the preceding months. According to Statistics Netherlands, investments have been up from twelve months previously for eight months in a row. The smaller increase in May is mainly due to lower investments in structures relative to May 2013. Investments in cars, machinery and equipment, on the other hand, were up from May 2013.
Investments in tangible fixed assets (volume)
Investments consistent with developments in manufacturing industry and construction
Investment developments are consistent with developments in the sectors manufacturing industry and construction. Statistics Netherlands announced earlier that manufacturing output in May was also up from twelve months previously, although the increase was far less substantial than in preceding months. Manufacturing output has continuously been up from the same month in the previous year since October 2013. The capacity utilisation rate in manufacturing industry has also risen over the past twelve months, but output levels in construction were down in May 2014 from May 2013, after having been up almost continually in the preceding five months.
Investment climate deteriorates marginally
On the basis of six indicators, the Investment Radar shows whether circumstances for Dutch private sector investments have improved or deteriorated. According to July’s Investment Radar, the investment climate in the Netherlands has deteriorated marginally. This is mainly due to exports. Last week, Statistics Netherlands reported that exports fell in May, after seven months of sustained growth.
For more information on economic indicators, see the Economic Monitor.