Netherlands: PMI increases in July
August 1, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, increased from 52.0 in June to 53.2 in July. The PMI thus moved further above the 50-threshold that separates expansion from contraction in business conditions.
July’s increase mainly reflected that both output and new orders expanded at a faster rate in July than in June. Moreover, employment expansion was the strongest since December 2015 and manufacturers’ purchasing activity rose for the fifth month in a row, and at the fastest pace in a year. Regarding price developments, input prices rose for the second consecutive month, and output charges also increased, albeit marginally. Jack Kennedy, Senior Economist at IHS Markit, commented on June’s result, saying that, “output growth in the Dutch manufacturing sector picked up in July, having eased to a near three-year low in the previous month. Export orders showed a healthy bounce, while the rate of job creation accelerated to the fastest so far this year. Overall, the data point to a solid pace of expansion at the start of the third quarter.”