Statistics Netherlands announced today that the volume of investment in tangible fixed assets was 0.4 percent lower in November 2014 than in November 2013. The modest decrease is mainly caused by lower investments in cars, infrastructural projects and computers. In October, investments grew by 5.8 percent.
Investments also rose in the period October 2013-May 2014. Negative and positive growth figures were recorded in the following months. This was mainly due to an erratic investment pattern in the construction sector. The current investment level 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. November 2014 had one working day less than November 2013.
Lower investments in cars and infrastructure
In November car sales continued to fall. In November 2013, the situation was the other way around. The growing car sales in November 2013 were partly caused by tax law changes. On 1 January 2014, the limits for CO2 emission, which apply to the tax on passenger cars and motorcycles (BPM) and the additional tax liability for company cars, became stricter. Therefore, many companies decided to buy new cars prior to 1 January 2014.
Investments in infrastructural projects and computers were also lower, but investments in residential and non-residential property were higher. This is consistent with the small production growth in the construction sector. Companies also bought more machinery and installations compared to one year previously.
Investment climate hardly changed in January
According to December 2014’s Investment Radar, the investment climate in the Netherlands hardly changed in January from December. The mood among Dutch manufacturers with respect to their order positions improved considerably. Consumer confidence rose marginally, but, compared to twelve months previously, Dutch share prices rose less rapidly than in the preceding month. The growth of exports was smaller than last month. By means of six indicators, the Investment Radar shows whether the investment climate has become more or less favourable.
More figures can be found in dossier Business cycle.
For more information on economic indicators, see the Economic Monitor.