Netherlands: Manufacturing PMI rises to over six-year high in June
July 3, 2017
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, came in at an over six-year high of 58.6 in June, up from May’s 57.6 reading. The PMI thus moved further above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
June’s result reflected stronger expansions in output and new orders, with Dutch firms enjoying buoyant demand for their products, both at home and abroad, especially from central Europe. This pushed manufacturers to increase their purchasing activity and hire more staff, with employment growing steeply in June. Regarding price developments, input price growth eased somewhat to an eight-month low, despite still remaining fairly elevated due to higher raw material prices. Higher prices for inputs were passed through to final consumers in the form of higher output prices.
Sam Teague, Economist at IHS Markit, commented, “June’s PMI survey data painted a positive picture of the Dutch economy. […] Confidence towards future growth prospects remained elevated in the latest survey. These strong second-quarter results alongside high business confidence back up the upbeat growth predictions for the Dutch economy in 2017.”