Dutch economy expands by 0.1 percent, 46 thousand fewer jobs

According to the first estimate by Statistics Netherlands, the Dutch economy grew by 0.1 percent in the third quarter van 2013 compared to the second quarter. It is the first time after the second quarter of 2012 that there is any quarterly growth. The quarter-on-quarter developments are seasonally adjusted.

Compared to the third quarter of 2012, the economy shrank by 0.6 percent. The third quarter of 2013 had one working day more than the third quarter of 2012.

 

Modest decline in investments

Dutch fixed capital formation was down by 3.0 percent in the third quarter of 2013 on a year earlier. The decline was much smaller than in the previous quarters. Investments in homes and in commercial buildings declined less than in previous quarters, for example. Investments in machinery and installations saw some growth, after having declined in the previous quarters.

 

Exports growing slightly

In the third quarter, the exports of goods and services rose by 2.1 percent on the previous year. The exports of Dutch products grew by 1.3 percent, re-exports by 2.6 percent. Re-exports have been growing for a while, but the exports of Dutch products had been down in the previous two quarters. Dutch imports were close to their 2012 level.

There was a large increase in the exports of natural gas, rubber and plastic products. Exports of machinery and equipment also grew. However, the exports of chemicals showed some decline.

 

Consumption slowing down further

Households spent 2.3 percent less on goods and services in the third quarter than a year earlier. Consumption has been slowing down for two and a half years now. Households particularly spent less on durables such as cars, clothing and furniture, just like they did in the previous quarters. They also spent less on food, energy and fuel.

Government consumption shrank 1.2 percent. This is mainly due to reduced spending by public administration. However, more was spent on care than a year earlier.

 

Construction contracting less

Many sectors produced less than a year earlier, but in some sectors production shrank less than in the second quarter. For instance, construction contracted by 2.6 percent, whereas it had contracted by 5.6 percent in the second quarter.  Contraction in trade, transport, and hotels and restaurants fell from 2.8 to 0.7 percent. Manufacturing saw contraction turn into an ever so slight expansion, although the extra working day also played a role in this.

Mining and extraction expanded by a robust 7.1 percent, just like it had in previous quarters. The growth was mainly due to rising exports of natural gas. In the previous quarters it was primarily domestic consumption of natural gas that grew, mainly due to the relatively cold weather.

 

Hefty job losses

There were 160 thousand fewer jobs of employees in the third quarter of 2013 than in the corresponding quarter of 2012. This is a drop of 2.0 percent, which constitutes the largest loss of jobs since the series began in 1995. Construction faced the greatest loss with 31 thousand jobs lost. A striking loss in the third quarter occurred in the care sector, where 30 thousand jobs were lost within one year. These jobs were mainly lost in child care and home help.

The seasonally adjusted figure for jobs was down by 46 thousand on the second quarter of 2013. This is a 0.6 percent decrease.