Netherlands: Manufacturing PMI hits new record in February
March 1, 2018
The NEVI manufacturing Purchasing Managers’ Index (PMI), co-produced with IHS Markit, increased to 63.4 points in February from 62.5 points in January. The result marked a new record-high level as the manufacturing sector continues to boom. Hence, the PMI moved further north of the 50-point mark that separates expansion from contraction in the sector.
Record levels of output growth, payroll expansion and increasing supplier delivery times underpinned the result in February. Manufacturing output grew at the quickest pace in the history of the survey, and production rose for a 58th consecutive month. Production was furthermore driven by strong growth in new orders and new export orders. Employment grew robustly in turn, leading to a slowdown in the increase in backlogs of work. Meanwhile, suppliers’ delivery times increased, reflecting strong demand for inputs. Because of robust demand, input prices rose strongly, and the inflationary pressures were passed on to consumers, with output prices increasing at the second-quickest rate in nearly seven years.
Trevor Balchin, Director of Economic Indices at IHS Markit, commented:
“The Dutch manufacturing boom showed no signs of abating in February […]. Looking ahead, Dutch manufacturers remained at their most optimistic regarding future output (over the next 12 months) since the questions was first added to the survey five-and-a-half years ago.”
Author: Jan Lammersen, Economist