A river under the bridge in the Netherlands

Netherlands Business Confidence February 2022

Netherlands: Business confidence cools in February

Business confidence eased to 8.5 in February from 9.0 on January. However, the index remained handsomely above the neutral zero-threshold, indicating that businesses remain optimistic.

The downtick in February came on the back of less upbeat views regarding output expectations and stocks of finished goods at present. However, opinions on manufacturers’ order positions improved in the month and limited the headline decrease.

Analysts at the EIU added:

“The manufacturing sector is struggling with supply-chain disruptions, including global shortages of shipping containers and semiconductor chips (a major input for the automotive industry). […] The manufacturing sector will also suffer as factories face higher absences due to illness or having to self-isolate. [Nonetheless] capacity utilisation in manufacturing has picked up to 84% (above the pre-crisis level), which suggests that private-sector investment activity will […] remain strong.”

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