The volume of investments in tangible fixed assets in July 2014 was up 5.2 percent on July 2013. this followed two months in which investments were slightly lower than twelve months previously. According to Statistics Netherlands, investments in residential and non-residential property and investment in infrastructural projects were the main contributors to July’s investment growth.
Investments have been on the up since October 2013, but the recovery came to a halt in May and June. The modest decrease in both months was mainly due to lower investments in construction. In July, investments picked up again, investments in construction accounting for the growth. Currently, investments are still far below the pre-crisis level at the end of 2008 as Statistics Netherlands reported last week.
Investments in tangible fixed assets (volume)
Higher output levels in the construction sector
In July 2014, output levels in the construction sector were more than 4 percent higher than in July 2013. Prior to the increase, output had been falling for two months in a row. The number of building permits granted for residential property is also increasing and house sales have risen significantly so far this year.
Investment climate deteriorates slightly in September
According to September’s Investment Radar, the investment climate in the Netherlands has deteriorated somewhat. On the basis of six indicators, the Investment Radar shows whether circumstances for Dutch private sector investments have improved or deteriorated.
The rise in Dutch share prices was far less substantial than in the preceding month. Dutch manufacturers were far more negative about their order positions and consumer confidence deteriorated slightly. Exports growth, on the other hand, was more substantial in July than in June.More figures can be found in dossier Business cycle. For more information on economic indicators, see the Economic Monitor.