Lower investment, particularly in property and means of transport

The volume of investment in tangible fixed assets was 3.8 percent lower in August 2014 than in August 2013. According to Statistics Netherlands, investment in residential and non-residential property and investment in means of transport were the main contributors to August’s deterioration.

Investment has been rising since October 2013, but the recovery came to a halt in May and June. The modest decrease in these two months was mainly caused by lower investment in construction. In July, investment picked up again, to fall again in August again as a result of investment in construction. The current level of investment is still far below the pre-crisis level at the end of 2008, as Statistics Netherlands reported last week.

Investment in tangible fixed assets (volume)

Investment in tangible fixed assets (volume)

Lower output in construction

In August 2014, output levels in the construction sector were almost 10 percent lower than in August 2013. This is a substantial drop, caused partly by the fact that more of the collective holiday period in this sector was in August this year than last year; August  2014 also had one working day fewer than the same month last year.

Investment climate remains the same

According to October’s Investment Radar, the investment climate in the Netherlands remained the same. On the basis of six indicators, the Investment Radar shows whether circumstances for Dutch private sector investment have improved or deteriorated.

Exports grew less substantially than in the preceding month. On the other hand manufacturers were less negative about their order positions and consumer confidence rose.

More figures can be found in dossier Business cycle.

For more information on economic indicators, see the Economic Monitor.