Netherlands: Manufacturing operating conditions deteriorate in November
The NEVI Manufacturing Purchasing Managers Index (PMI), produced by S&P Global, fell to 46.0 in November from 47.9 in October. This marked the seventh consecutive month in which the index fell; as such, the index moved further below the neutral 50-threshold that separates deteriorating from improving business conditions compared to the prior month.
The stronger contraction in business conditions was driven by sharper falls in output, new orders and purchases of inputs. High energy prices linked to the war in Ukraine and low consumer confidence continued to weigh on demand. More positively, employment rose further, albeit at the weakest rate since November 2020. Turning to prices, reduced demand for inputs led to another moderation in input price inflation, but price pressures remained elevated nonetheless. Output price inflation also remained historically high, despite easing to a 20-month low.