Manufacturing prices continue to fall

According to Statistics Netherlands (CBS), output prices of products manufactured in the Netherlands were 7.5 percent down in May 2016 from one year previously. The price drop is a bit less substantial than in the previous month. In April, prices fell by 8.2 percent on a year-on-year basis. Again, the crude oil price and prices of petroleum derivatives were significantly lower than in the same month last year.

Selling prices
Selling prices
 % change
2012 J1.2
2012 J1.8
2012 A4.6
2012 S4.4
2012 O4.7
2012 N3.3
2012 D2.7
2013 J1.3
2013 F1.1
2013 M-0.9
2013 A-2.2
2013 M-1.6
2013 J0
2013 J-0.4
2013 A-2.3
2013 S-2.8
2013 O-3.5
2013 N-2.7
2013 D-1.7
2014 J-2.2
2014 F-3
2014 M-2.8
2014 A-1
2014 M-0.5
2014 J0.3
2014 J-0.7
2014 A-1.4
2014 S-1.6
2014 O-2
2014 N-3.7
2014 D-8
2015 J-10.6
2015 F-8.9
2015 M-6.7
2015 A-5.5
2015 M-4.9
2015 J-5.3
2015 J-6
2015 A-8.1
2015 S-9.2
2015 O-8.9
2015 N-6.9
2015 D-5
2016 J-4.2
2016 F-7
2016 M-7.3
2016 A-8.2
2016 M-7.5

Lower crude oil and output prices

Year-on-year oil prices have fallen almost continuously since 2013. In May, the price of a barrel of North Sea Brent oil was 42 euros, i.e. 28 percent below the price level recorded in May 2015. In April, the barrel price was 38 euros, nearly 33 percent below the level recorded one year previously.

Year-on-year prices of petroleum derivatives slumped by 26.8 percent in May 2016 and by nearly 31 percent in April 2016. Evidently, prices of petroleum derivatives are directly affected by crude oil price developments. If petroleum price developments are not taken into account, the price drop in manufacturing output would have been 4.5 percent.

Prices of chemical, (basic) metal, food, rubber and plastic products, machinery and the automotive industry were also down from twelve months previously.

Selling prices manufacturing by sector
Selling prices manufacturing by sector
 % change
Cars-0.1
Machine-0.5
Rubber and plastic-0.6
Metal products-0.6
Food products-1.6
Basic metal products-5.1
Chemical products-15
Petroleum products-26.8

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 more expensive in May than in April

Prices of manufactured products increased on a month-on-month basis. In May 2016, output prices of manufactured products rose by 1.5 percent relative to April. The price rise of manufactured products on the foreign market was somewhat more substantial than on the domestic market: 1.6 versus 1.4 percent. The crude oil price also increased in May compared to April.

Index selling prices
Index selling prices
 index
2012 J112.3
2012 J113.7
2012 A116.1
2012 S116.7
2012 O116.2
2012 N115.2
2012 D114.4
2013 J114.9
2013 F115.9
2013 M114.8
2013 A113.2
2013 M112.8
2013 J112.3
2013 J113.2
2013 A113.4
2013 S113.4
2013 O112.2
2013 N112.1
2013 D112.5
2014 J112.4
2014 F112.5
2014 M111.6
2014 A112.1
2014 M112.2
2014 J112.6
2014 J112.4
2014 A111.9
2014 S111.5
2014 O109.9
2014 N108
2014 D103.5
2015 J100.4
2015 F102.5
2015 M104.1
2015 A105.9
2015 M106.8
2015 J106.6
2015 J105.7
2015 A102.8
2015 S101.3
2015 O100.2
2015 N100.5
2015 D98.3
2016 J96.2
2016 F95.3
2016 M96.5
2016 A97.3
2016 M98.7

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