Netherlands: Manufacturing operating conditions deteriorate at sharper rate in May
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by S&P Global, fell to 44.2 in May from 44.9 in April. As such, it remained below the neutral 50-threshold that separates deteriorating from improving business conditions compared to the prior month.
The steeper contraction in business conditions was driven by the ongoing demand weakness, which translated into sturdier drops in output and new orders. As such, backlogs of works fell sharply and firms readjusted their inventories, leading to weaker input buying and stock levels. That said, employment continued to increase in May, albeit at a modest rate. Moreover, despite rising caution, companies still remained positive in their 12-month outlook. Turning to prices, in May, input costs fell at the quickest pace since January 2015 which led output prices to fall for the first time since July 2020.