Netherlands: PMI virtually unchanged in September
October 3, 2016
The NEVI Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and NEVI, decreased marginally from 53.5 in August to 53.4 in September. The PMI thus remains above the 50-threshold that separates expansion from contraction in business conditions.
September’s result mainly reflected that growth in output, new orders and employment, albeit solid, was marginally slower than in August. Production continued to expand but at the lowest pace in three months, and new orders increased for the seventh month running, but at a slower pace than in the previous month. On the external front, new export orders also increased, albeit at a softer pace. Employment rose for the nineteenth month in a row, but the rate of job creation was the softest since June. Similarly, the rate of growth in manufacturers’ purchasing of inputs eased to a three-month low. Regarding price developments, input prices rose modestly, while output charges declined, as competitive pressures took their toll.
Jack Kennedy, Senior Economist at IHS Markit, commented on September’s result, saying that, “the Dutch manufacturing sector continued to expand at a steady clip in September, remaining on track to deliver another solid contribution to GDP growth in the third quarter following the 0.6% increases seen in Q1 and Q2. Capacity restrictions in the supply chain were again signalled, as vendor lead times showed another marked lengthening.”