Netherlands: Manufacturing conditions improve at the softest clip in over two years in November
The manufacturing Purchasing Managers’ Index (PMI), produced by NEVI and IHS Markit, dropped from 57.1 in October to 56.1 in November. The result marked the lowest reading since October 2016 but remained above the critical 50-point mark separating expansion from contraction in the manufacturing sector. The index has remained in expansionary territory for over five years.
The moderation in the headline figure came on the heels of slower expansions in output and employment. New order growth remained fairly stable despite strong demand from particularly Asian markets, suggesting that domestic demand eased. In terms of prices, input cost pressure remained marked owing to higher prices for foodstuffs and oil-related items. Consequently, output price inflation remained elevated. Business confidence picked up slightly from the over two year low in the prior month. Sentiment improved due to new products, export expectations and capacity investment.
Commenting on the apparent slowdown in the manufacturing sector in the Netherlands, Trevor Balchin, Director at IHS Markit, stated that: “the recent slowdown should, however, be viewed through the prism of recent out-performance relative to both the survey history and the eurozone as a whole. The Netherlands continues to fare much better than Germany and France.”