The Dutch economy grew by 0.1 percent in the first quarter of 2026 compared to the previous three months, Statistics Netherlands (CBS) reports. That is a clear slowdown from the 0.4 percent growth in the last quarter of 2025, but still positive.
Shadow effects
The conflict in the Middle East, which broke out in late February, is beginning to cast a cautious shadow over corporate outlooks. Across industries, companies note that the war adds to economic uncertainty, even if its full impact is not yet fully visible in the first‑quarter results.
Energy‑intensive industries such as steel and global consumer‑goods exporters are watching energy prices, trade flows, and demand closely, while food‑ and ice cream‑related businesses are alert to possible knock‑on effects on consumer spending later in the year.
Exports and households
Exports of goods fell by 1.2 percent, mainly due to weaker sales of machinery and transport equipment, especially to countries outside the EU such as the United States, the United Kingdom, and China. Households, however, kept spending. Consumption grew steadily, with higher spending on clothing and food and drink, while outlays on fuels and transport went down.
Chief CBS economist Peter Hein van Mulligen cautions that one quarter is not enough to signal a full‑blown turnaround. The effects of the conflict in the Middle East only started to show in March and may become clearer in the second quarter.
Strong global sales, Europe lags
Consumer goods giant Unilever posted a solid start to the year, with 12.6 billion euros in turnover in the first quarter. Underlying revenue growth, stripping out one‑off effects, came in at 3.8 percent, above market expectations.
The company’s personal care and beauty brands—including Dove and Vaseline—were key drivers, as were household products such as detergents and deodorants. That shift is speeding up with the announced sale of a large part of its food division, including brands like Knorr and Calvé, to US rival McCormick in a deal worth about 39 billion euros. The deal is expected to close by mid‑2027.
Sales rose strongly in Asia, emerging markets, and the US, but Europe saw a slight decline of nearly 1 percent. The company notes that growth in premium products in detergents, deodorants, and sauces was offset by weaker performance in other segments. Growth was positive in the Netherlands and France, but negative in Germany and parts of Eastern Europe.
Rising profits despite Middle East tensions
European steel giant ArcelorMittal reported better‑than‑expected profits in the first quarter of 2026. Revenue rose by 4.5 percent to 15.5 billion dollars (about 13 billion euros), while net profit dipped by 29 percent to 575 million dollars—still above analysts’ expectations.
CEO Aditya Mittal described the performance as “resilient,” even amid turmoil in the Middle East. ArcelorMittal is benefiting from stricter EU steel import rules: Brussels has curbed duty‑free imports and plans to raise import duties on the rest to 50 percent from July. The EU carbon levy on steel imports also helps protect local producers from low‑cost, carbon‑intensive competition from countries such as China.
A “summer‑ready” start
Unilever‑spun‑off ice cream company Magnum also opened the year on a positive note. Comparable sales rose by 4.5 percent in the first quarter, giving the company an “encouraging start to 2026”, acknowledges CEO Peter Ter Kulve.
In Europe, growth was driven by new Magnum flavours such as pistachio and peach, as well as the earlier timing of Easter, which boosted seasonal sales. However, the company faced a headwind from unfavourable exchange rates, which reduced the euro value of revenue outside Europe. As a result, total revenue decreased by just over 1 percent to slightly under 1.8 billion euros.
Magnum is preparing for what it expects to be a strong summer season and remains cautiously optimistic about the rest of the year, despite the ongoing uncertainty around the Iran war.
@anp | NEWSBRAINPORT
