Netherlands Business Confidence July 2016


Business confidence remains high in July despite mild decline

The producer confidence indicator, which measures Dutch manufacturers’ sentiment, decreased slightly from June’s 5.4 to 5.1 in July, according to the Central Bureau of Statistics (CBS). The index thus remains comfortably above the 0-point threshold that separates optimistic from pessimistic sentiment, contradicting widespread fears that the Brexit vote would have a pronounced impact on business confidence.

According to the CBS, the deterioration reflected that producers were slightly less positive about all three areas measured in the index: order books, future output and stocks of finished products. In terms of specific sectors, producers of transport equipment were the most negative, while producers in the wood and construction industry remained by far the most optimistic.

For 2016, FocusEconomics Consensus Forecast panelists see fixed investment growing 4.8%, which is down 0.2 percentage points from last month’s forecast. For 2017, the panel expects fixed investment to expand 3.3%.

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Netherlands Business Confidence Chart

Netherlands Business Confidence July 2016 2

Note: Value of producer confidence indicator index. The 0-point threshold separates optimistic from pessimistic sentiment.
Source: Statistics Netherlands (CBS).

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