Consumption in Netherlands
Netherlands - Consumption
Economic growth picks up pace in Q2 on the back of fixed investment growth and the external sector
The Dutch economy picked up pace in the second quarter according to the first estimate of Statistics Netherlands released on 14 August, with calendar-adjusted quarter-on-quarter growth coming in at 0.7% (Q1: +0.6% quarter-on-quarter). A year-on-year comparison, however, showed that the economy decelerated. In the second quarter, economic growth came in at 2.9% in non-working-day adjusted terms, up from the first quarter’s 2.8% expansion.
Domestic demand in Q2 was carried by fixed investment, which expanded 0.7% over the previous quarter. Nevertheless, this was significantly down from the first quarter’s 2.5% growth rate. Household consumption was flat in Q2 (Q1: +1.4% quarter-on-quarter) despite unemployment remaining at a near-decade low throughout the second quarter. Growth in government consumption, meanwhile, slowed markedly to 0.2% from Q1’s 0.4%.
The external sector rebounded from the first quarter’s slump during which net exports dragged on growth. In the second quarter, exports expanded 0.9% (Q1: -0.6% qoq) partially thanks to a noteworthy rebound in goods exports. Imports, meanwhile, contracted 0.1% (Q1: +0.3% qoq), likely linked to weaker domestic demand as the pace of growth in goods imports moderated markedly while services imports contracted.
Looking ahead, the Dutch economy is expected to continue growing at a solid pace this year on the back of public and private consumption, and fixed investment. However, the contribution of net exports is expected to moderate on higher oil prices and slower world trade growth. Downside risks stem from Brexit—the United Kingdom ranks among the most important trading partners of the Netherlands—and the possibility of a flare-up in trade tensions between the U.S. and the EU.
A detailed national accounts breakdown will be released on 21 September.
Netherlands GDP Forecast
The government expects the economy to grow 2.9% in 2018 and 2.7% in 2019. Met the why particular Consensus Forecast panelists, however, see GDP growing at a softer pace of 2.6% in 2018, which is down 0.1 percentage points from last month’s projection. For 2019, the panel expects the economy to expand 2.1%.
Netherlands - Consumption Data
|Consumption (annual variation in %)||-1.0||0.3||2.0||1.6||1.9|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.60||5.70 %||Sep 19|
|Exchange Rate||1.18||0.65 %||Sep 20|
|Stock Market||547||-0.57 %||Sep 20|
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September 20, 2018
Consumer confidence remained elevated at the end of the third quarter despite a broad-based deterioration in underlying sentiment indicators.
September 3, 2018
Midway through the third quarter, operating conditions in the Dutch manufacturing sector improved as the NEVI manufacturing Purchasing Managers’ Index (PMI), co-produced with IHS Markit, increased to 59.1 in August from 58.0 in July.
August 30, 2018
Sentiment in the manufacturing industry eased for the third consecutive month in August, as business confidence dropped to 5.9 from 6.3 in July due to less upbeat views on order books and future output.
Netherlands: Consumer confidence remains elevated in August despite slightly less optimism about the year ahead
August 21, 2018
Sentiment among Dutch consumers remained elevated in August, despite dipping somewhat on a slightly less rosy outlook on the economic climate.
Netherlands: Economic growth picks up pace in Q2 on the back of fixed investment growth and the external sector
August 14, 2018
The Dutch economy picked up pace in the second quarter according to the first estimate of Statistics Netherlands released on 14 August, with calendar-adjusted quarter-on-quarter growth coming in at 0.7% (Q1: +0.6% quarter-on-quarter).