Netherlands PMI


Netherlands: PMI falls in August

September 1, 2015

The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, dropped from 56.0 in July to 53.9 in August, marking the lowest level in five months. Despite the moderation, the PMI remains well above the 50-threshold that separates expansion from contraction in business conditions.

According to Markit Economics, August’s drop reflected setbacks in all five main components of the index. Output, new orders and employment recorded softer expansions than in July. In addition, stocks of purchases swung into contraction and suppliers’ delivery rates lengthened more slowly. Input prices continued to increase in August, but their inflation rate dropped to the lowest level in four months, and output charges rose for a third consecutive month.

According to the survey report, “August PMI data point to a softening of growth momentum in the Dutch manufacturing sector from recent strong rates. Underlying the slowdown was a moderation of new order growth, although expansion continues to run at a solid clip overall. Lower energy prices meanwhile alleviated some of the pressure on input costs.”

FocusEconomics Consensus Forecast panelists see fixed investment rising 5.6% in 2015, which is up 0.4 percentage points from the previous month’s estimate. For 2016, the panel expects fixed investment to increase 2.8%.

Author: Teresa Kersting, Economist

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Netherlands PMI Chart

Netherlands PMI August 2015

Note: NEVI Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 point to a contraction.
Source: Markit and NEVI.

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