Netherlands: Manufacturing operating conditions deteriorate in September
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by S&P Global, fell to 49.0 in September from 52.6 in August. This marked the first time in over two years that operating conditions among Dutch manufacturers deteriorated; the index moved below the neutral 50-threshold that separates deteriorating from improving business conditions compared to the prior month.
The headline drop came on the back of the steepest decline in output and new orders since June 2020; both foreign and domestic demand moderated. Demand dynamics deteriorated against the backdrop of an impending recession, excess stocks and soaring energy bills. Turning to prices, input price inflation rose to a three-month high and drove a three-month high output price inflation reading in turn.