In September, industrial production contracted 1.9% over the previous month in seasonally adjusted terms, contrasting the 0.3% increase registered in August. The reading was below market expectations that had industrial output rising 0.2%. The September contraction was the result of weak performance in all the main categories of industrial production, except utilities. Manufacturing, which accounts for the bulk of industrial production, fell 1.4% over the previous month (August: +0.5% month-on-month). In addition, mining and quarrying production decelerated sharply over August resulting in a decline of 11.2% (August: +3.8% mom). Utilities, however, expanded a strong 7.0% in September, contrasting the 1.4% rise registered in the previous month. On an annual basis, industrial production grew 3.8%, which was down from the 7.0% increase in August. The September reading supports the upward trend, with the annual average industrial production growth reaching 5.0%, up from 3.9% recorded in August. Consensus Forecast panellists anticipate the industrial production to grow 6.0% in 2010, which is down 0.8 percentage points from last month's forecast. In 2011, panellists anticipate economic growth to fall further to 2.1%, which is down 0.5 percentage points from last month's forecast.
Industrial production falls in September
November 9, 2010
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Netherlands Economic News
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