Netherlands: PMI decreases slightly in June
July 1, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by Markit and NEVI, decreased slightly from 52.7 in May to 52.0 in June. The PMI is still above the 50-threshold that separates expansion from contraction in business conditions.
June’s moderate decrease mainly reflected that both output and new orders expanded at a slower rate in June. Moreover, employment expanded at the slowest rate in 15 months whereas manufacturers’ purchasing activity continued to rise, albeit at a moderate rate. Regarding price developments, input prices rose for the first time in ten months. Output charges increased marginally and marked the first rise in seven months. Jack Kennedy, Senior Economist at Markit, commented on June’s result, saying that, “the Dutch manufacturing sector cooled further in June, with output growth easing to a near three-year low. Softening demand conditions were behind the slowdown, with export orders a particular area of weakness […]. Data for the second quarter as a whole suggest that the manufacturing sector made a modest contribution to overall GDP growth.”