Netherlands: PMI remains strong in July, despite slight moderation
August 3, 2015
The NEVI Manufacturing Purchasing Managers’ Index (PMI), which is produced by Markit and NEVI, receded slightly from June’s 18-month high of 56.2 to 56.0 in July. Despite the small moderation, the PMI remains well above the 50-threshold that separates expansion from contraction in business conditions.
According to Markit Economics, July’s small moderation mainly resulted from the fact that new orders expanded at a softer rate than in the previous month. Nonetheless, according to Markit, despite the slowdown, new orders continued to expand at a healthy pace and new export orders even registered the largest expansion in 19 months. Employment and purchasing activity both expanded at a slightly slower rate in July than in June, but still remained healthy. Conversely, output continued to increase in July and the rate of expansion hit a 19-month high. Meanwhile, stocks of purchases were roughly unchanged and suppliers’ delivery times lengthened in July. Input price inflation was elevated in July, despite receding slightly from June’s 38-month high, and output prices increased for a second straight month.
According to the survey report, “the Dutch manufacturing sector delivered another punchy performance at the start of the third quarter, with output growth quickening to the fastest for over one-and-a-half years.”