Dutch industrial sector continued to drop in production for March

The output of the Dutch industrial sector dropped by six percent in March compared to a year ago, Statistics Netherlands (CBS) reports. The production levels also dropped in the eight months before this yearly because of fewer orders and weakening activity.

Over three-quarters of the industrial company classes produced less in March than a year earlier. Of the eight most prominent branches, machine repairs and installations showed the most significant drop in production, followed by the transportation equipment industry. The chemical industry was the only branch with a slight production increase.

CBS reported earlier that manufacturers were less pessimistic in April than in March. Manufacturers were mainly more positive about the expected activities and less negative about their order portfolio. In Germany, an important sales market for the Dutch industrial sector, manufacturers' confidence was more negative in April than in March.

Nevi, the Dutch Association for Purchasing Managers, reported earlier this month that the Dutch industrial sector seems to be recovering more quickly than in the surrounding countries in the eurozone, like Germany.

Data from Nevi shows that the production, the number of new orders, and the employment opportunities increased in April. The rise in new orders at the Dutch manufacturing companies was the biggest in two years.

The German statistics bureau Destatis said on Wednesday that production in the German industrial sector dropped by 3.3 percent compared to a year earlier. Production is down by 0.4 percent monthly after increases in January and February.

Economists had already predicted a 0.7 percent monthly drop in production. ING economist Carsten Brzeski claimed that the drop shows that the German industrial sector is still far removed from a clear recovery.