Netherlands: Manufacturing PMI reaches multi-year high in August
September 1, 2017
The NEVI Manufacturing Purchasing Managers’ Index (PMI), a co-production between IHS Markit and NEVI, broke another multi-year high in August, coming in at 59.7, up from the previous month’s 58.9. August’s print was a six-and-a-half-year high. As a result, the PMI moved further north of the crucial 50-point mark, as growth in the Dutch manufacturing sector continues to accelerate.
The result was primarily driven by strong expansion rates in output and new orders, which benefitted from solid domestic and foreign demand. The growth rate of output was the fastest in more than 17 years, while new orders grew at the fastest rate in nearly four years. Foreign demand was particularly strong from Asian and North American countries. Following the increase in business activity in the manufacturing sector, employment rose again as manufacturers took on new staff to meet the increasing demand for goods. Despite higher input price inflation, output price inflation eased in August.
Sam Teague, Economist at IHS Markit, commented that, “The manufacturing sector appears to be on track to contribute towards an upswing in GDP growth in 2017.”
Author: Jan Lammersen, Economist