Lower year-on-year selling prices in manufacturing industry
In May 2015, prices of Dutch manufactured products were 5.0 percent down from May 2014. In April this year, prices were 5.6 percent below the level of twelve months previously. Prices of manufactured products are closely related to oil prices. If oil price developments are not taken into account, manufacturing prices were 2.2 percent lower, according to Statistics Netherlands (CBS).
Oil prices still low
In May, oil prices were again lower than in May 2014, but the price drop was less substantial than in the preceding five months. The price of a barrel of North Sea Brent oil was nearly 59 euros, i.e. 26 percent below the price level recorded in May 2014. In April, year-on-year oil prices had dropped by 27 percent.
Petroleum derivatives were nearly 20 percent cheaper in May 2015 than in May 2014. In April, year-on-year prices had fallen by 22 percent. Evidently, prices in this sector are seriously affected by crude oil prices.
Prices of chemical products were 6.0 percent down from twelve months previously. In chemical industry, selling prices are also affected by crude oil prices. Food, drinks and tobacco products were more than 4 percent below the level of one year previously. This is partly due to a price drop in dairy products caused by the lifting of the milk quota scheme on 1 April. Prices of rubber and plastic products were also marginally down.
Prices of (basic) metal products and machinery and car parts, on the other hand, were marginally up from twelve months ago.
Altogether, the eight industries referred to in the above text and the corresponding graph account for nearly 80 percent of Dutch manufacturing output.
Prices manufactured products in May nearly 1 percent up from April
In May 2015, selling prices of manufactured products rose by 0.8 percent relative to April 2015. Prices on the domestic market rose by 0.4 percent, prices on the foreign market by 1.0 percent.
For more information on economic indicators, see the Economic Monitor.