Netherlands: PMI falls in November, but remains in expansionary territory
The NEVI manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell to 60.7 in November from 62.5 in October. This marked the weakest improvement in business conditions since February, but the index remained above the neutral 50-threshold that separates an overall improvement from deterioration in business conditions. Consequently, the index continued to indicate a robust expansion nonetheless.
The drop came on the back of the softest growth in output in nearly a year and the slowest increase in new orders in a year. New orders growth slowed due to the easing of domestic and foreign demand, despite stronger new business inflows from Asia and the UK. Output cooled on the back of material and labor shortages, with backlogs of work rising further despite continued job creation. Turning to prices, input prices rose at one of the steepest paces on record and led to the strongest rise in output prices since the series began in 2002. Lastly, output expectations for the next 12 months remained strongly positive despite cooling to a 13-month low.