Manufacturing prices continue to fall

© Roger Dohmen
Statistics Netherlands (CBS) reports that output prices of products manufactured in the Netherlands were 5.8 percent down in July 2016 from July 2015. Again, the price drop is less substantial than in the preceding month. If price developments in the petroleum industry are not taken into account, the price drop in July would have been 3.3 percent.

Selling prices
Selling prices
 % change
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
2016 J-6.1
2016 J-5.8

Lower crude oil and output prices

Year-on-year oil prices have fallen almost continuously since 2013. The price of a barrel of North Sea Brent oil was 42 euros in July, i.e. nearly 19 percent below the price level recorded in July 2015. In June, the barrel price exceeded 44 euros, 22 percent below the level recorded one year previously.
Year-on-year prices of petroleum derivatives slumped by 22.8 percent in July 2016 and by 21 percent in June 2016. Evidently, prices of petroleum derivatives are directly affected by crude oil price developments.
With nearly 14 percent, the price drop in the chemical industry was also above average. Prices of basic metal, rubber and plastic products and machinery were also down from twelve months previously, while prices of food products, metal products and prices in the automotive industry were higher than one year ago.

Selling prices manufacturing by sector
Selling prices manufacturing by sector
 % change
Food products1.1
Metal products0.8
Cars0.2
Machine-0.5
Rubber and plastic-0.8
Basic metal products-1.8
Chemical products-13.6
Petroleum products-22.8

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 less expensive in July than in June

Prices of manufactured products decreased on a month-on-month basis. In July 2016, output prices of manufactured products fell by an average of 0.5 percent, while prices rose in the preceding three months. Prices on the foreign market fell more rapidly than on the domestic market: 0.7 versus 0.3 percent. The crude oil price also decreased in July compared to June.

Index selling prices
Index selling prices
 index
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 M98.8
2016 J100.1
2016 J99.6

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