Economic picture in the Netherlands remains negative in September

The economic situation in the Netherlands showed little sign of improvement in September, compared to the previous month, according to the latest edition of the CBS Business Cycle Tracer from Statistics Netherlands.

Out of 13 indicators measured, 10 were below their long-term trend, the data showed.

On balance, the overall economic outlook has been ‘virtually stable’ in the Netherlands over the past five months, despite the uneven impact on different households, businesses, and regions.

Consumer and producer confidence in September was less negative than in August, Statistics Netherlands noted, but both remain below their long-term average over the last two decades.

Household consumption rose in July

Elsewhere, data showed that household consumption increased by 1.1% in July 2024, as people spent more on services and goods.

Exports were also up, growing by 2.2% year on year in July, with increases in food, beverages, tobacco, and various industrial products.

However, investments in tangible fixed assets were down by 1.2%, particularly in buildings and aircraft.

Manufacturing output fell significantly, with a 4.4% year-on-year decline in July. This means that July marked the 13th-straight month of contraction, with a 1.1% drop compared to June after adjusting for calendar effects.

Business and employment

Statistics Netherlands data also showed that bankruptcies in the Dutch market decreased in August by 18%, yet the overall trend has been an upward rise in insolvencies over the past two years.

In contrast, house prices rose sharply in August, with existing owner-occupied homes becoming 11.2% more expensive compared to the previous year, marking the largest increase in two years.

Employment statistics reveal a slight increase in work hours by 0.4% in Q2 2024. However, unemployment rose marginally to 3.7% in August.

Job vacancies continued to decline, with 10,000 fewer job openings at the end of the second quarter of 2024, continuing a downward trend observed over nearly two years.

Despite challenges in various sectors, the Dutch economy posted a 1.0% GDP growth in Q2 2024 compared to the previous quarter. This growth was driven primarily by goods exports, with public consumption and investments also contributing positively.