Dutch producers to actualise investments in 2003

Dutch producers to actualise investments in 2003

Only a few rays of hope are seen in the Netherlands' bleak economic situation described in December. The industrial production is not showing signs of recovery. The seasonally corrected production figure fell by 3.0% in October compared to September. Producer confidence was lower in November than in October and consequently many manufacturers delay their investments until the economic outlook becomes more favourable. Dutch entrepreneurs are however expecting a 10% increase in investments in 2003 compared to 2002. One positive aspect is that consumer confidence improved somewhat in December compared to November and inflation reached its lowest point since December 2000. The consumer price index in November was 3.2% higher than in November last year. Dutch entrepreneurs in the manufacturing industry, mining and quarrying and utilities expect to invest 11% more this year than they did in 2002. It is mainly the result of the delay in investments from 2002 to 2003. There are delays in virtually all branches of industry. Many entrepreneurs indicated in the fall of 2001 and in the spring of 2002 that investments were likely to be delayed until 2002 or 2003. In the fall of 2002 the entrepreneurs expect that the investments foreseen for this year will be moved to 2003 or even 2004. Many industrial entrepreneurs are delaying their investments until the economy picks up.