Netherlands: Manufacturing PMI continues to rise in July
August 1, 2017
In July, the NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, beat the previous month’s multi-year high as it rose from 58.6 in June to 58.9. The PMI moved further north of the crucial 50-point mark that separates expansion from contraction in the manufacturing sector and recorded the highest reading since April 2011.
The PMI recorded a healthy start to the third quarter of the year as July’s print came on the back of faster job growth as well as continued strong growth in output and new orders. Production levels increased sharply in July and the rate of expansion was one of the fastest in over three and a half years. Moreover, new orders followed suit and order books were boosted by the thirteenth consecutive monthly increase in demand from abroad. Enjoying resilient demand, Dutch manufactures continued to take on extra staff during July as the employment rate grew for the second consecutive month and marked the fastest pace since February 2011. Furthermore, input prices rose markedly and were passed on to final consumers as output prices rose at the fastest rate for four months.
Sam Teague, Economist at IHS Markit, commented that, “July’s survey signaled the Dutch manufacturing economy moving up a gear […] showing underlying strengths to expand rapidly alongside the other Eurozone economies.”
Author: Jan Lammersen, Economist