Netherlands: PMI strengthens in October
November 2, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, rose from 53.4 in September to 55.7 in October, the best reading since July 2015. The PMI thus went further above the 50-threshold that separates expansion from contraction in business conditions.
October’s result mainly reflected stronger growth in output, new orders and employment. Production and new orders continued to expand, increasing at the fastest pace in 15 months. On the external front, new export orders also increased, albeit at the softest pace in four months. Employment rose for the twentieth month in a row, and at the strongest rate since April 2011. Moreover, the rate of growth in manufacturers’ purchasing of inputs accelerated to the steepest pace since July 2015. Regarding price developments, both input and output prices rose. Growth in input prices was likely driven by higher oil prices.
Jack Kennedy, Senior Economist at IHS Markit, commented on October’s result, saying that, “the latest PMI data signalled a further strong expansion in the Dutch manufacturing sector at the start of the fourth quarter. A sharp rise in domestic demand was the driver.”