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The Netherlands business confidence drops in July

Staff Writer |
Sentiment in the manufacturing industry in The Netherlands dropped for the second consecutive month at the outset of the third quarter.

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In July, business confidence dropped to 6.3 from 7.7 in June, which was driven by less upbeat views on order books and future output. Nevertheless, the index remained above the crucial zero-point mark that separates optimism from pessimism.

The result was also markedly above the long-term average of 0.8 over the past 20 years.

In contrast to less optimism regarding order books and future output, firms held a rosier view on stocks of finished goods.

Moreover, all sub-components of the sentiment index remained in optimistic territory and all subsectors of the manufacturing industry were optimistic, as has been the case for over a year.

Companies in the wood and building materials industry remained the most positive in July.

FocusEconomics Consensus Forecast panelists see fixed investment growing 5.5% in 2018, which is up 0.5 percentage points from last month’s forecast. For 2019, the panel expects fixed investment to expand 3.6%.

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