Dutch Business Sentiment Improves in December

Business confidence in the Netherlands’ manufacturing sector rose to 0.8 in January 2026, turning positive for the first time since March 2023, from -1.1 in December. Expectations for business activity strengthened, with expected production rising to 12.7 from 9.6. Sentiment toward order books also improved, as assessments became less negative at -5.4 compared with -6.0 previously, while pessimism over finished goods inventories eased further to -4.8 from -6.9. At the sector level, producers in other industries and repair were the most positive in January, followed by electrical engineering and machinery and transportation equipment, where confidence either improved sharply or remained resilient. Sentiment also strengthened in basic metals and metal products, supported by a firmer activity outlook and improved order positions. By contrast, confidence remained weakest in the textile, clothing and leather sector.

Business confidence in the Netherlands rose to -1.1 in December 2025 from a three-month-low of -1.7 in the previous month and above its 20-year average of -1.3. Manufacturers’ pessimism over finished goods inventories softened slightly, easing to -6.9 from -7, while the negative outlook for order books improved (-6 vs -7.7). In addition, Optimism for expected production over the next three months remained steady at 9.6, unchanged from November. The overall outlook strengthened across more than half of the underlying sectors. Producers in the transportation equipment industry were the most positive, followed by firms in other industries and the repair sector. Sentiment also recovered in the basic metals and metal production industries. In contrast, producers in the wood and building materials sector were the most pessimistic.

Business confidence in the Netherlands fell to -1.7 in November 2025 from -0.8 in October, marking the first decline after five months of improvement. The reading also went below its 20-year average of -1.3. The drop was largely driven by increased pessimism about finished goods inventories, which fell to -7 from -4.7. Optimism for expected production over the next three months also eased (9.6 vs. 10.7), while the negative outlook for order books softened slightly (-7.7 vs. -8.5). In around three-quarters of the underlying industries, producer confidence deteriorated in November. Producers in the transportation equipment industry were the most positive, whereas those in the paper and printing sector were the most negative.