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New figures from the Central Bureau of Statistics (CBS) show that Dutch manufacturing output shrank again in April. With a contraction of 3.5 percent, this is the tenth consecutive decline. Almost all industries saw a reduction in production.

Why this is important:

Industry provides many important (innovative) products, such as medicines and alternatives to plastics.

Almost half of all business classes in manufacturing produced less in April than in the same month a year earlier. Machinery repair and installation experienced the largest drop in production of 40%. This industry includes repair and installation of aircraft, ships, trains, and other vehicles. Due to the large amount of maintenance work at one company last year, the decline in this industry is now significant. Electrical and electronic equipment manufacturing, chemicals, and metals production increased, by about 5%.

Reason for reduced production

A major reason for why there is less production is the high energy price, chief economist Peter Hein van Mulligen of CBS explained earlier to VNO-NCW. In addition, there are other factors at play. Economic growth is lagging worldwide, with the exception of the United States. The Netherlands does not escape this either. Less economic growth leads to reduced demand, resulting in a less favorable outlook for the manufacturing sector.

There could be several consequences if the contraction of Dutch manufacturing continues. Chemical companies produce raw materials for plastics and medicines, among other things.