Netherlands: Deterioration in manufacturing operating conditions softens in August
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by S&P Global, improved to 45.9 in August from 45.3 in July. As a result, the index moved marginally closer to the neutral 50-threshold that separates deteriorating from improving business conditions, signaling a softer, albeit still strong, deterioration in operating conditions compared to the prior month.
August’s uptick was driven by softer contractions in output and new orders, although both were still being dragged down by weak demand—partly due to costs and weather-related factors. Less positively, employment fell for the third consecutive month, exhibiting the largest reduction in nearly three years. Turning to prices, despite input costs continuing to decrease, factory gate charges rose for the first time in five months. Meanwhile, optimism for the next 12 months fell to a ten-month low.