investment higher, particularly in machinery and computers

The volume of investment in tangible fixed assets was 5.0 percent higher in October 2014 than in October 2013. Investment in dwellings, infrastructure and in machinery and installations were the main contributors to October’s growth, according to Statistics Netherlands. In September, investment grew by 3.5 percent.

Investment also rose in the period October 2013-May 2014, and fluctuated in subsequent months. This was mainly caused by erratic investment developments in construction projects. The current level of investment is far below the pre-recession level at the end of 2008.

Investment figures are not adjusted for differences in the number of working days. October 2014 had a similar working day pattern as October 2013.

Investment in tangible fixed assets (volume)

Investment in tangible fixed assets (volume)

More investment in construction projects

Private sector investment was higher for dwellings and infrastructure in particular in October. This is consistent with the development in construction output: this was 3.2 percent higher in October 2014 than in October 2013. Companies also bought more machinery and installations. This is in line with the improved business confidence, as published by Statistics Netherlands at the end of last month. Investment in cars, on the other hand, were down from October last year.

Investment climate deteriorates marginally in December

According to December 2014’s Investment Radar, the investment climate in the Netherlands has deteriorated somewhat in December from November. Exports grew by less than in the preceding month. Manufacturers were also far more negative about their order positions. By means of six indicators, the Investment Radar shows whether circumstances for Dutch investments have become more or less favourable.

More figures can be found in dossier Business cycle.

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