Netherlands: Manufacturing PMI drops to near two-year low in July
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by S&P Global, eased to 54.5 in July from 55.9 in June, reaching a 20-month low. However, the index remained above the neutral 50-threshold that separates improving from deteriorating business conditions compared to the prior month.
The headline moderation reflected softer rises in output and new orders—which rose at their weakest pace in two-years—while stocks of finished goods expanded at a record pace. Demand was impeded by elevated inflation and the uncertain economic backdrop due to the war in Ukraine. Muted new inflows of work drove a weaker expansion in backlogs of work in the month. Yet despite easing momentum, firms continued to increase headcounts. Turning to prices, input price inflation eased to an 18-month low but remained elevated nonetheless. Output price inflation eased in conjunction, despite firms passing on greater input burdens to customers. Lastly, confidence moderated in the month amid the troubled economic panorama.