Netherlands: Manufacturing operating conditions deteriorate more sharply in February due to muted demand
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by S&P Global, fell to 48.7 in February from 49.6 in January. 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 muted demand, which led to further drops in new orders and weaker growth in output and employment. That said, there were improvements in delivery times and backlogs of work amid easing supply chain pressures. Moreover, the 12-month outlook for output remained at January’s historically elevated level, pointing to continuing optimism among firms. Turning to prices, rates of input and output price inflation decelerated to 29- and 25-month lows, respectively.