Netherlands: PMI inches down in December
January 4, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, fell marginally from 53.5 in November to 53.4 in December. Despite the moderation, the PMI remains well above the 50-threshold that separates expansion from contraction in business conditions.
December’s slight moderation mainly reflected that the pace of job creation decelerated and purchasing activity grew at a slower pace than in November. However, according to Markit Economics, December’s reading, “still pointed to a solid rate of improvement in overall business conditions.” Output grew at a notable pace in December, picking up from November’s eight-month low. New orders performed subdued in December, even though they grew at a faster rate than in the previous month, particularly new export orders. Following four months of decreases, the level of outstanding business increased. Regarding price developments, input prices and output prices both fell, albeit the latter only marginally.
According to the survey report, “output growth in the Dutch manufacturing sector accelerated to a marked rate at the end of 2015, although it may be difficult to maintain this pace in the New Year if new orders fail to pick up from the subdued expansion seen in the fourth quarter. Recent drops in manufacturers’ input costs, following decreases in the prices of a number of key commodities, may afford firms greater scope for cutting output prices in a bid to stimulate demand.”