Netherlands: PMI advances notably in June
July 1, 2015
The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, rose from May’s 55.5 to 56.2 in June. This represented the highest reading in 18 months. The PMI is now further above the 50-threshold that separates expansion from contraction in business conditions.
According to Markit Economics, June’s improvement mainly reflected that output, new orders, new exports orders, employment and stocks of purchases expanded at a faster pace than in May. Conversely, suppliers’ delivery times lengthened at a weaker pace than in the previous month. Outstanding business remained broadly stable compared to May, as employment continued to rise markedly. Input and output prices both rose in June, pointing to rising price pressures.
According to the survey report, “the Dutch manufacturing sector upturn continued in June, with the PMI hitting a one-and-a-half year high. The strength of the expansion raises the likelihood that GDP figures for the second quarter will show a pick-up in growth following the 0.6% rise seen in the opening quarter of the year. Positive news for the labour market came in the form of employment increasing at the sharpest rate in four years during the latest survey period.”