Higher oil prices drive up Dutch industrial turnover

Dutch industrial turnover rose 8.4% in the second quarter, the biggest year-on-year rise since the end of 2022. But it was driven mainly by higher oil prices rather than a real recovery, figures from national statistics agency CBS show.

Prices across industry were 5% higher than a year ago, so more than half of the rise reflects costlier goods rather than higher sales. Last year, turnover had fallen 0.7%.

The growth was also uneven, with refineries and the chemical industry taking in 31.2% more than a year earlier, and the oil industry alone up 83% as its selling prices rose 40.5%.

The higher oil prices stem from disruption to the Strait of Hormuz, which has been largely shut since US and Israeli strikes on Iran in late February. With few ships getting through, prices have risen – the same reason petrol has been so expensive in the Netherlands this year.

Not every sector grew. Food, drink and tobacco fell furthest, with turnover down 6.7%, mainly because selling prices dropped. Shoppers are unlikely to see that in the supermarket yet, as there are many steps between factory and shelf.

Manufacturers are more optimistic about the months ahead, with more expecting higher turnover than at any point since mid-2022. Even so, many still cannot find enough workers, and slightly more industrial companies went bankrupt than a year earlier, CBS said.