Netherlands: PMI improves again in May
June 1, 2015
The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, rose from April’s 54.0 to 55.5 in May. This represented the best reading in 17 months. The PMI is now further above the 50-threshold that separates expansion from contraction in business conditions.
According to Markit Economics, May’s improvement mainly reflected that output, new orders and employment increased at a faster pace than in April and that suppliers’ delivery times increased. Conversely, stocks of purchases increased and held the PMI back from a stronger increase. While average purchasing costs rose again in May, output prices fell for a second straight month.
According to the survey report, “the acceleration in Dutch manufacturing sector growth momentum signalled by May’s PMI data raises the likelihood of a positive GDP outturn following the 0.4% expansion registered in Q1. Increasingly robust demand conditions supported the latest growth, with demand strong both domestically and abroad. Manufacturers were sufficiently encouraged to raise employment at the sharpest rate for 18 months.”