Netherlands: PMI falls in January
February 1, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, fell from 53.4 in December to 52.4 in January, which marked the lowest reading in nearly a year. Despite the moderation, the PMI remains above the 50-threshold that separates expansion from contraction in business conditions.
January’s moderation mainly reflected that output recorded the slowest expansion since March of last year. In addition, the pace of job creation decelerated to the slowest rate in nine months. Conversely, new orders and new export orders both accelerated somewhat in January. While backlogs of work declined, stocks of finished products grew and stocks of purchases were broadly stable in January. Regarding price developments, input prices recorded the steepest drop in nearly a year, mainly due to lower prices for commodities such as oil. Output charges declined for a second consecutive month.
According to the survey report, “the Dutch manufacturing sector started the New Year on a softer note, with growth momentum easing to the slowest since early-2015. Muted new order growth in recent months has contributed to a slowdown in the rate of expansion of output, while job creation also weakened in the latest survey period. However, manufacturers saw a boon from falling input prices, which they partly passed on to customers in the form of lower output prices in a bid to bolster order books.”