In July 2015, prices of Dutch manufactured products were 6.0 percent down from July 2014. In June, prices had been 5.4 percent below the level of twelve months previously. Prices of manufactured products are closely related to oil prices. Prices of other resources are also under pressure. If price developments in the oil industry are not taken into account, manufacturing prices were 2.4 percent lower, according to Statistics Netherlands (CBS).
Oil prices low
Year-on-year oil prices were still falling in July. The price drop was more substantial than in the preceding two months. The price of a barrel of North Sea Brent was almost 52 euros, i.e. more than 35 percent below the price level recorded in July 2014. In June, oil prices had dropped 31 percent on an annual basis.
Prices of oil derivatives dipped by 25.2 percent in July 2015 compared to July 2014. In June, year-on-year prices had dropped by 22.4 percent. Evidently, prices in this sector are seriously affected by crude oil price changes.
Prices of chemical products were 6.8 percent down from twelve months previously. In the chemical industry, selling prices are also affected by crude oil prices. Food products were 4.5 percent cheaper than 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 meat, cereals, rice and other agricultural products also decreased marginally, just as basic metal products.
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 80 percent of total Dutch manufacturing industry.
Manufactured products somewhat cheaper in July than in June
In July 2015, selling prices of manufactured products fell by 0.8 percent relative to June 2015. Prices on the domestic market declined by 0.7 percent, prices on the foreign market by 0.9 percent. This is the second month in a row with a drop in prices, after four months of increase. This is related to the development of crude oil prices.
For more information on economic indicators, see the Economic Monitor.