In September 2015, output prices of products manufactured in the Netherlands were 9.1 percent down from September 2014. In August this year, prices were 8.1 percent below the level of twelve months previously. Prices of manufactured products are strongly linked to oil prices. If price developments in the petroleum industry are not taken into account, manufacturing prices were 4.2 percent lower, according to Statistics Netherlands (CBS).
Oil prices down
Since 2013, year-on-year oil prices have almost continuously fallen. In September, the price drop was about the same as in August. The price of a barrel of North Sea Brent oil was 43 euros, i.e. 43 percent below the price level recorded in September 2014. In August, oil prices had fallen 44 percent on an annual basis.
Products of petroleum derivatives slumped 35.4 percent in September 2015 compared to September 2014. In August, year-on-year prices had dropped by 33 percent. Evidently, price developments in the petroleum industry are seriously affected by crude oil prices.
Prices of chemical products were 13.6 percent down from twelve months previously. In chemical industry, lower oil prices also have a downward affect on output prices.
Prices of food products were 4 percent below the level of one year previously. This is partly due to lower prices for dairy products caused by lifting of the milk quota scheme on 1 April. Prices of corn, rice and other agricultural products also fell. Basic metal products were cheaper too. This development goes hand in hand with falling steel prices.
Year-on-year prices of machinery, cars, rubber and plastic products and metal products, on the other hand, were marginally higher.
Altogether, the eight industries referred to in the above text and the corresponding graph account for nearly 80 percent of total Dutch manufacturing industry.
Manufactured products cheaper in September than in August
In September 2015, output prices of manufactured products fell by 1.4 percent relative to August 2015. Prices on the domestic market declined by 1.4 percent, prices on the foreign market by 1.5 percent. Early this year, output prices were still rising, but in recent months prices have fallen. This is predominantly caused by the slumping oil price.