Netherlands: Manufacturing PMI stable in September
October 1, 2019
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, was stable at August’s 51.6 in September. While the print still suggests a modest improvement in the manufacturing sector and marked the 75th consecutive month of improving business conditions, the index points to relatively subdued activity.
The stable reading in September came on the back of easing new order growth—chiefly owing to sluggish foreign demand—and a softer rise in output that was largely offset by more employment in the sector. In fact, payrolls were increased at the fastest pace in eight months. Production was mainly driven by consumer goods and points to falling investment goods output. Inflationary pressures, meanwhile, subsided somewhat: input prices rose at the weakest pace in over three years and output prices only increased marginally.
Looking ahead, Dutch manufacturers were the most optimistic in eight months and maintained a positive outlook on production levels for the year ahead. However, Lewis Cooper, economist at IHS Markit, commented that “growth remains suppressed in the context of historical data.”
Author: Jan Lammersen, Economist