Netherlands: Manufacturing PMI signals sustained expansion in March
April 3, 2017
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, declined slightly to 57.8 in March from February’s 58.3, which had marked a multi-year high. The PMI thus remained comfortably above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
March’s result reflected strong growth in output, new orders and employment, with new orders expanding at the fastest rate since December 2013 and output increasing for the 47th consecutive month. This pushed manufacturers to increase their purchasing activity and to contract more staff, with backlogs of work still on the rise. Regarding price developments, input prices grew strongly, mainly due to higher prices for commodities.
Sam Teague, 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.”