Netherlands: Manufacturing PMI reaches record high in November
December 1, 2017
The NEVI manufacturing Purchasing Managers’ Index (PMI), co-produced with IHS Markit, came in at 62.4 points in November, beating the previous month’s 60.4 points to reach the highest level since the survey began in March 2000. As a result, the PMI moved further north of the crucial 50-point mark that separates expansion from contraction in the manufacturing sector.
The result indicated another strong improvement in business conditions in the Netherlands; the trend of increasing business sentiment has been extended to 53 consecutive months. November’s print was underpinned by an unprecedented pace of growth in output and employment as well as a strong growth rate in new orders. The latter rose sharply on the back of new export orders, which increased at the quickest pace since February 2011.
Because of strong new orders growth, output increased markedly, leading manufacturers to increase their payrolls by taking on more staff. Increased staffing was, however, not enough to decrease backlogs of work, which increased at the quickest rate in more than 10 years. In terms of prices, inflationary pressures intensified in November as input price inflation was passed on to consumers.
Trevor Balchin, Director at IHS Markit, commented that:
“The recent PMI results suggest that momentum in the official data will remain strong in the coming months. More widely, the Dutch economy is set to grow by […] the strongest expansion since 2007.”
Author: Jan Lammersen, Economist