A river under the bridge in the Netherlands

Netherlands PMI September 2018

Netherlands: Manufacturing conditions improve at the quickest pace in three months in September

The Dutch manufacturing sector finished the third quarter on a strong footing, with the headline manufacturing Purchasing Managers’ Index (PMI) increasing from 59.1 in August to 59.8 in September, marking a three-month high. The index, produced by NEVI and IHS Markit, remained above the crucial 50-point threshold that separates expansion from contraction in the manufacturing sector, as has been the case since July 2013.

The improvement in the headline reading was thanks to faster increases in output, employment, new orders and new export orders, with new export orders and employment rising at the steepest pace in seven and eight months respectively. In part reflective of healthy demand levels, suppliers’ delivery times and manufacturers’ input orders rose sharply.

In September, input price inflation increased rapidly due to shortages of raw materials and higher prices for steel and oil. These higher costs were passed on to consumers, with output price inflation reaching a seven-month high. Business sentiment improved, with firms planning to increase capacity and introduce new products going forward.

Netherlands Fixed Investment Forecast

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