In October 2015, output prices of products manufactured in the Netherlands were 8.7 percent down from October 2014. In September this year, prices were 9.1 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 4.6 percent lower, according to Statistics Netherlands (CBS).
Oil prices down, output prices down
Since 2013, year-on-year oil prices have fallen almost continuously. In October the price of a barrel of North Sea Brent oil was 44 euros, i.e. 37 percent below the price level recorded in October 2014. In September, year-on-year oil prices fell by 43 percent.
Products of the petroleum derivatives industry slumped 32.7 percent in October 2015 compared to October 2014. In September, year-on-year prices had dropped by 35.4 percent. Evidently, price developments in this industry are seriously affected by crude oil prices.
Prices of chemical products were 15.5 percent down from twelve months previously. In the chemical industry, lower oil prices also have a downward affect on output prices. Prices of food products were 2.9 percent below the level of one year previously. This is partly due to lower prices for agricultural products. 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 October than in September
In October 2015, output prices of manufactured products fell by 1.1 percent relative to September 2015. Prices on the domestic market declined by 0.6 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 oil price.