Netherlands PMI


Netherlands: PMI improves in April

May 1, 2015

The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, rose from March’s 52.5 to 54.0 in April. As a result, the PMI index moved further above the 50-threshold that separates expansion from contraction in business conditions.

According to Markit Economics, April’s improvement mainly reflects that output, total new orders as well as new export orders grew at a faster pace than in March. Stocks of finished goods dropped and backlogs of work decreased in April. In addition, employment continued to increase and the quantity of items purchased by manufacturers rose again in April. While input prices registered the first increase in eight months, output charges recorded a slight decline.

According to the survey report, “[t]he performance of the Dutch manufacturing sector improved further in April, as strengthening demand drove output growth up to a five-month high. The weakness of the euro versus the dollar helped support robust new export order growth, although also contributed to a first rise in input costs for eight months. Overall, the latest data point to a manufacturing sector picking up speed at the start of the second quarter.”

FocusEconomics Consensus Forecast panelists see fixed investment rising 3.5% in 2015, which is down 0.1 percentage points from the previous month’s estimate. For 2016, the panel expects fixed investment to increase 2.9%.

Author: Teresa Kersting, Economist

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Netherlands PMI Chart

Netherlands PMI April 2015 0

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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