In June 2015, prices of Dutch manufactured products were 5.4 percent down from June 2014. In May this year, prices were 4.9 percent below the level of twelve months previously. Prices of manufactured products are closely related to oil prices. If price developments in the petroleum industry are not taken into account, manufacturing prices were 2.1 percent lower, according to Statistics Netherlands (CBS).
Oil prices low
In June, year-on-year oil prices continued to fall. The price drop was more substantial than in the preceding two months. The price of a barrel of North Sea Brent oil was almost 57 euros, i.e. 31 percent below the price level recorded in June 2014. In May, oil prices had dropped 26 percent on an annual basis.
Products of petroleum derivatives slumped 22.4 percent in June 2015 compared to June 2014. In May, year-on-year prices had dropped by 19.9 percent. Evidently, prices in this sector are seriously affected by crude oil prices.
Prices of chemical products were 5.9 percent down from twelve months previously. In chemical industry, selling prices are also affected by crude oil prices. Food products were 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 corn, rice and other agricultural products also decreased marginally.
Prices of metal, rubber and plastic products, car parts and machinery and equipment - on the other hand - were slightly higher than twelve months ago.
Altogether, the eight industries referred to in the above text and the corresponding graph account for almost 80 percent of total Dutch manufacturing industry.
Manufactured products somewhat cheaper in June than in May
In June 2015, selling prices of manufactured products fell by 0.2 percent relative to May 2015. Prices on the domestic market and the foreign market fell by 0.2 percent.
For more information on economic indicators, see the Economic Monitor.