Dutch economic climate deteriorates in December 2023

Consumer confidence in the Netherlands showed a slight improvement in December 2023 compared to the previous month, but it remained significantly below the long-term average of the past two decades. Conversely, producer confidence declined further, continuing to stay below the 20-year average.

In terms of trade, the total volume of goods exports, adjusted for the number of working days, fell by 7.5 per cent year-on-year in October. This decline in exports was accompanied by a decrease in household spending, which was 0.2 per cent lower in October 2023 compared to the previous year, adjusted for shopping-day patterns and price changes. The decrease in spending was primarily due to reduced purchasing of goods, as per CBS.

The Dutch manufacturing industry also experienced a downturn, with the average daily output in October 2023 being 11.1 per cent lower than in October 2022. This decline continued the trend of contraction seen in previous months of 2023. After seasonal adjustments, manufacturing output fell by 0.5 per cent between September and October.

In the labour market, the number of hours worked, adjusted for seasonal effects, rose by 0.4 per cent in the third quarter (Q3) of 2023 compared to the previous quarter, totalling just over 3.6 billion hours. However, the number of unfilled vacancies decreased for the fifth consecutive quarter, with 416 thousand unfilled vacancies at the end of Q3, 12 thousand fewer than at the end of Q2.

Unemployment in November saw a slight decrease to 3.5 per cent of the labour force, with 357 thousand people unemployed. This represented an average decline of 2 thousand per month over the preceding three months.

The temporary employment and job placement sector saw a marginal increase in turnover by 0.5 per cent in Q3 2023 compared to the previous quarter.

The overall economic picture was further clouded by the GDP data. The volume of gross domestic product fell by 0.3 per cent in Q3 2023 relative to the previous quarter, marking the third consecutive quarter of contraction. This decline was primarily due to reduced investments in fixed assets, a decrease in inventory changes, and a decline in household consumption. This trend points to continued economic challenges in the Netherlands as the year progresses.

Fibre2Fashion News Desk (DP)