According to the first estimate conducted by Statistics Netherlands, the Dutch economy shrank 0.2 percent in the second quarter of 2013 compared to the first quarter. This is the fourth quarter in a row showing economic decline, although with each quarter the decline became less severe. The economy contracted 1.8 percent relative to the second quarter of 2012. The second quarter of this year had the same amount of working days as the second quarter of 2012.

In the second quarter, household consumption on goods and services was 2.4 percent below the level of one year previously. Household consumption has been in a downward spiral for more than two years now. Dutch consumers spend less money on durable goods like cars, clothes and furniture, but also cut down on food, drinks and tobacco. Consumers spent more on natural gas than last year due to the relatively cold weather conditions in spring.

Government consumption fell by 0.5 percent as a result of a spending cut on public administration Government spending on care was higher than last year.

Investments dramatically down
Fixed capital formation in the second quarter was 9.4 percent below the level of one year previously. This is the sixth consecutive quarter showing a downward trend, although the decline is smaller than in the first quarter. In the construction sector, investments were still declining, but less rapidly. The same applies to investments in machinery and computers. Car sales were dramatically down, partly because last year more cars were sold as companies anticipated the introduction of the higher tax rate on passenger cars and motorcycles (BPM), effective from 1 July 2012.

Exports also marginally down
Exports of goods and services decreased by 0.3 percent in the second quarter relative to twelve months previously. Exports of petroleum derivatives dropped dramatically, whereas last year the foreign demand for these products was exceptionally high. Imports were 1.7 percent below the level of one year previously.

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Dutch Daily News