Dutch Inflation Remains Steady at 3.6% in August, Economic Picture More Negative
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Loading... - Abrasha Volkov
- 03 Sep 2024
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In August 2024, the Netherlands experienced a slight decrease in consumer price index (CPI)-based inflation, which stood at 3.6%, down from 3.7% in July, according to a flash estimate by Statistics Netherlands (CBS). Despite this small drop in inflation, the overall economic outlook for the country became more negative, as highlighted by CBS's Business Cycle Tracer. Out of 13 economic indicators monitored, 11 performed below their long-term trends, indicating a downturn.
While consumer sentiment remained unchanged from July to August, producers became less negative, although both groups' confidence levels were below the long-term average for the past two decades. Household spending saw a year-on-year decrease of 0.7% in June 2024, with an increase in spending on services but a decrease in spending on goods.
Additional economic indicators also showed signs of strain. The volume of goods exported in June was down 1% year-on-year, and manufacturing output fell by 4.9% year-on-year, continuing a trend of decline over the past 12 months. Furthermore, there was a significant increase in the number of business bankruptcies in the first seven months of the year, rising by approximately 43% compared to the previous year.
Unemployment remained stable at 3.6%, with 370,000 people aged 15 to 74 unemployed in July. The number of job vacancies also continued to decline, with a slight drop in Q2 2024.
However, there was some positive news: gross domestic product (GDP) increased by 1% quarter-on-quarter in Q2 2024, primarily driven by goods exports, public consumption, and investments. The growth in goods exports is linked to a positive trend in the manufacturing sector.
