Netherlands: October business confidence reaches highest point in over two years
October 24, 2013
The producer confidence indicator, which measures Dutch manufacturers' sentiment, rose to a seasonally-adjusted minus 0.5 points in October according to the Central Bureau of Statistics (CBS). This represents an improvement compared to the minus 2.8 points recorded in September. The index has not been this close to the 0-point threshold that separates optimistic from pessimistic sentiment since September 2011.
According to the CBS, two of three components of the indicator improved in October. Businesses were less pessimistic than they were in September regarding both current orders and projected output over the next three months. Their perceptions regarding stocks of finished products deteriorated marginally.
For 2013, the FocusEconomics Consensus Forecast panel sees fixed investment contracting 8.2%, which is unchanged from last month's forecast. For 2014, the panel expects fixed investment to expand 0.8%, which is also unchanged from last month's projection.
Author: Carl Kelly, Economist