Netherlands: PMI moderates in April but remains in expansion mode
May 2, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by Markit and NEVI, fell from 53.6 in March to 52.6 in April. Nevertheless, the PMI remains above the 50-threshold that separates expansion from contraction in business conditions.
April’s moderate setback mainly reflected that output and new orders expanded at a slower pace than in March. However, employment continued to rise and manufacturers’ purchasing activity picked up. Regarding price developments, input prices and output charges continued to drop. Jack Kennedy, Senior Economist at Markit, commented on March’s result, saying that, “the latest PMI data indicate that the Dutch manufacturing sector carried solid growth momentum into the second quarter. Although cooling a touch since March, output continues to expand at a reasonable clip, boosted by perky export orders in particular. Falling input costs afforded manufacturers scope to cut their output charges further, aiding pricing strategies.”