Netherlands: Manufacturing operating conditions deteriorate in October
The NEVI Manufacturing Purchasing Managers Index (PMI), produced by S&P Global, fell to 47.9 in October from 49.0 in September. This marked the sixth 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 sharp falls in new orders, exports and output and the first decline in stocks of finished goods this year. Economic uncertainty and high energy prices linked to the war in Ukraine continued to weigh on demand. More positively, employment increased as firms continued to fill vacancies and address backlogs. Turning to prices, input price inflation moderated amid the recent easing of pressure on supply chains, but inflation remained elevated nonetheless. Output price inflation declined to a three-month low, but remained elevated nonetheless.