Netherlands: Manufacturing PMI hits multi-year high in December
January 2, 2017
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, rose from 57.0 in November to 57.3 in December, the best reading since April 2011. The PMI thus moved further above the 50-threshold that separates expansion from contraction in business conditions.
December’s result reflected stronger growth in output, new orders and employment, with output increasing at the fastest pace in three and a half years. Moreover, favorable demand conditions pushed manufacturers to increase their purchasing activity to the highest level since records began in March 2000. On the external front, new export orders also increased at a healthy pace, fueling the strongest foreign demand since July 2015. Regarding price developments, input prices grew at the fastest pace in over five years on the back of a weaker EUR/USD exchange rate, which led prices for imported goods to rise; consequently, manufacturers reacted by raising output prices.