Manufacturing output 12.5 percent down in May

© Hollandse Hoogte / Westend61 GmbH
In May 2020, the average daily output generated by the Dutch manufacturing industry was 12.5 percent down on May 2019. Output showed the largest year-on-year decrease in the span of more than 11 years, as reported by Statistics Netherlands (CBS).

Average daily output manufacturing (volume)
jaarmaandchange (year-on-year % change)
2016June3.2
2016July3.3
2016August2.4
2016September2.3
2016October0
2016November3.4
2016December6.7
2017January0.4
2017February4.9
2017March3
2017April0.5
2017May5
2017June2.4
2017July2.7
2017August3.7
2017September4.8
2017October5.1
2017November5.3
2017December4.4
2018January7.5
2018February3.2
2018March3.8
2018April4.7
2018May2.9
2018June3.3
2018July0.9
2018August4
2018September1.7
2018October2.4
2018November1.3
2018December-4.3
2019January-0.6
2019February-0.1
2019March-0.8
2019April-0.3
2019May-0.9
2019June-2.5
2019July0
2019August-1.7
2019September1.2
2019Oktober0.5
2019November-1.6
2019December-1.2
2020January1.4
2020February-0.9
2020March-1.9
2020April-11
2020May-12.5

Largest output decline in transport equipment industry

Of the eight largest industries within manufacturing, the transport equipment industry again recorded the strongest output contraction. However, the decline was somewhat smaller than in the previous month, due to the fact that a number of large factories in the automotive industry re-opened partially. Almost all industries saw their output decline on an annual basis, except the machinery, tobacco and other industry.

Average daily output manufacturing (volume) by sector, May 2020
Categorychange (year-on-year % change)
Machinery3.5
Food products-8.1
Chemical products-10.8
Electrical and electronics-12.8
Rubber and plastic products-13.6
Metal products-16.7
Repair and installation of machinery-28.6
Transport equipment-38.6
Manufacturing (total)-12.5
Altogether, the industries referred to in the above graph account for approximately 75 percent of the total manufacturing output

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 April and May of 1.9 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.

Seasonally adjusted average daily output manufacturing (volume)
jaarmaandindex (2015=100)
2016June103.3
2016July102.9
2016August101.7
2016September102.3
2016October102.5
2016November105
2016December106.3
2017January103.1
2017February105.5
2017March105.2
2017April104.6
2017May106.6
2017June106.1
2017July106.1
2017August105.6
2017September107.3
2017October107.7
2017November109.7
2017December110.4
2018January110.5
2018February109.4
2018March109.4
2018April109.4
2018May109.6
2018June109.3
2018July107.6
2018August109.3
2018September109.1
2018October109.6
2018November110.2
2018December107
2019January109.6
2019February109.2
2019March108.8
2019April108.9
2019May108.5
2019June107.3
2019July107.5
2019August107.8
2019September109.5
2019October109.7
2019November108.4
2019December106.5
2020January109.8
2020February107.8
2020March106.5
2020April97.5
2020May95.6

Producer confidence continues to recover

In June, Dutch manufacturers were again less negative than in the previous month. This is mainly due to notably improved expectations on future output.

Germany is an important foreign market for the Dutch manufacturing industry. According to the Business Climate Index of the IFO Institute, producer confidence was significantly less negative in June than it was in May. This is entirely attributable to notably improved opinions on future output. It is the strongest improvement in expectations on record. However, opinions on the current situation remained negative. In May, the average daily output generated by the German industry contracted by almost 24 percent year-on-year, as reported by Destatis.

The figures published in this news release are provisional and subject to revisions.

Sources

Related items