Netherlands: Manufacturing PMI hits multi-year high in February
March 10, 2017
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, rose from 56.5 in January to 58.3 in February, marking a multi-year high. The PMI thus moved further above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
February’s result reflected strong growth in output, new orders and employment, with output expanding at the fastest rate since July 2006 and new orders increasing at the strongest pace in over three years. Manufacturers benefited from both strong domestic demand and expanding export orders, which pushed manufacturers to increase their purchasing activity and to contract more staff, with employment growth hitting six-year high. Regarding price developments, input prices grew at the fastest pace in almost six years, mainly due to higher prices for raw materials; consequently, manufacturers reacted by raising output prices.
Alex Gill, Economist at IHS Markit, commented, “the latest data signalled the strongest improvement in operating conditions at Dutch manufacturing companies since April 2011. […] Furthermore, positive expectations suggest the sector is well-placed to continue its upward trajectory in the coming months.”