Netherlands: Manufacturing PMI rises in April; business sentiment at over two-year high
The Nevi Netherlands Manufacturing Purchasing Managers’ Index (PMI) improved to 51.3 in April from 49.7 in March. As a result, the index moved above the 50.0 no-change threshold for the first time in 20 months and signaled an improvement in manufacturing-sector operating conditions compared to the previous month.
April’s uptick was primarily driven by an improved demand environment, which led to increased production volumes and an accelerated recruitment drive at factories. New orders placed at Dutch factories saw a solid overall expansion, reaching a two-year high. Additionally, the rate of output growth was the strongest in nearly two years. This growth in demand and output occurred despite a continued drop in manufacturers’ purchasing activity and a sharper fall in stocks of purchases, reflecting efforts towards more efficient inventory planning.
Regarding prices and business sentiment, April saw the return of cost inflation for the first time in over a year, driven by increased raw material and wage costs. This inflation led to a rise in output charges for the fourth consecutive month and at the strongest rate in just over a year. Business sentiment reached the highest level of optimism in over two years, driven by expectations of demand improvements and the start of new projects to support output growth over the coming year.