Netherlands: PMI continues to rise in August
September 1, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, increased from 53.2 in July to a five-month high of 53.5 in August. The PMI thus moved further above the 50-threshold that separates expansion from contraction in business conditions.
August’s increase mainly reflected an expansion in output at the fastest rate since March and in new orders at the fastest rate in a year. On the external front, new export orders also increased at the fastest rate in a year. Moreover, employment rose for the eighteenth month in a row, and the rate of job creation remained solid. Manufacturers’ purchasing of inputs grew for the sixth consecutive month. Regarding price developments, input prices fell for the first time in three months, while output charges remained broadly unchanged. Jack Kennedy, Senior Economist at IHS Markit, commented on August’s result, saying that, “Dutch manufacturers were boosted by the strongest rise in new orders for a year in August, underpinned by solid demand conditions in both domestic and export markets. The sector looks set to deliver a decent contribution to GDP growth in the third quarter, following the 0.6% expansions seen in both Q1 and Q2. Manufacturers continued to add jobs in the latest month, extending the current period of growth to one-and-a-half years.”