Domestic Demand in Netherlands
Netherlands - Domestic Demand
Economic growth remains solid in Q3, matches preliminary estimate
A second reading of national accounts data revealed that the economy grew 0.4% quarter-on-quarter in the third quarter, matching the preliminary estimate and Q2’s result, and continuing to cruise above the Euro area average. Economic growth in the three months ending in September was mainly buttressed by government consumption and the external sector. Annual economic growth in the third quarter also matched the previous estimate of 1.9%, up from the 1.8% expansion in the prior quarter.
On the domestic front, fixed investment declined (Q3: -0.3% quarter-on-quarter, previously reported: -0.2% qoq; Q2: +0.8% qoq). Fixed investment chiefly contracted due to a marked drop in public investment outlays, while private investment growth eased. On the other hand, public consumption growth accelerated notably from 0.1% in the second quarter to 0.5% in the third. Meanwhile, private consumption grew a revised 0.1% over the prior quarter in Q3 (previously reported: +0.2% qoq), notably down from the stellar 0.7% expansion logged in the second quarter, which had marked a five-quarter high.
On the external front, net exports continued contributing positively to economic growth. Exports of goods and services grew a revised 1.2% quarter-on-quarter in Q3 (previously reported: +1.1% qoq), slightly down from the 1.3% expansion logged in the prior quarter. Imports of goods and services also grew 1.2% over the prior quarter in Q3, up from the 1.0% expansion logged in Q2.
Looking ahead, the Dutch economy should continue growing at a robust, albeit more moderate pace in 2020. Domestic demand is seen losing some steam owing to weaker investment growth, likely due in part to ongoing uncertainty over the protracted Sino-American trade conflict and Brexit.
FocusEconomics Consensus Forecast panelists see GDP growing 1.4% in 2020, which is unchanged from last month’s projection. For 2021, the panel expects the economy to expand 1.5%.
Netherlands - Domestic Demand Data
|Domestic Demand (annual variation in %)||-0.6||0.1||6.9||-0.7||2.3|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||-0.06||5.70 %||Jan 01|
|Exchange Rate||1.12||0.65 %||Dec 31|
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January 22, 2020
Consumer confidence dropped from minus 2 in December to minus 3 in January, as the index remained below the neutral zero-mark that separates pessimism from optimism among consumers.
January 2, 2020
The Dutch manufacturing sector ended the year on a sour note, as operating conditions worsened at the strongest pace in over six-and-a-half years in December: The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell to 48.3 in December from 49.6 in November, remaining below the 50-threshold that separates an overall increase from an overall decrease compared to the prior month. The contraction was driven by the steepest reduction in output in over a decade as well as a sharp drop in order book volumes.
December 30, 2019
At the close of the year, sentiment among Dutch manufacturers ticked up marginally.
December 24, 2019
A second reading of national accounts data revealed that the economy grew 0.4% quarter-on-quarter in the third quarter, matching the preliminary estimate and Q2’s result, and continuing to cruise above the Euro area average.
December 20, 2019
Sentiment among Dutch consumers was unchanged in December from the prior month at minus 2.