Manufacturing output 2.5 percent down in March

Production growth in machinery industry

Of the eight largest industries within manufacturing, the machinery industry recorded the highest output growth. However, most industries saw their output decline on an annual basis. The transport equipment industry reported the largest year-on-year decrease. A number of companies in this industry completely shut down their factories on 19 March.

Downward trend

A more accurate picture of short-term output developments is obtained when figures are adjusted for seasonal effects and the working-day pattern. After adjustments, a decrease is seen in manufacturing output between February and March of 1.0 percent. 

Adjusted for seasonal and working-day effects, manufacturing output is seen to fluctuate significantly. From mid-2014 until the beginning of 2018, the overall trend was upward. Subsequently, the trend has been downward.

Historic drop in producer confidence

In April, producer confidence plummeted to its lowest level since the start of the producer confidence survey in 1985 on account of the global response to the COVID-19 crisis. This was by far the largest decline ever measured. The historic drop was especially visible in expected industrial output, which tumbled to an unprecedented level. In March, there were still slightly more positive than negative entrepreneurs.

Germany is an important foreign market for the Dutch manufacturing industry. According to the IFO Institute, in April the Business Climate Index fell to its lowest level since March 2009. Similar to the Netherlands, it was the strongest monthly drop in confidence ever recorded. In March, the average daily output generated by the German manufacturing industry was 14 percent lower than in the same month last year. This is reported by Destatis.

The figures for the reporting month of March reflect the effects of the coronavirus outbreak to a limited extent. Producer confidence in March was just positive.