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Dutch manufacturing PMI hits survey record in November

Staff Writer | December 5, 2017
Dutch manufacturing business conditions strengthened at a survey-record pace in November, according to the latest PMI survey data from NEVI and IHS Markit.
Dutch manufacturing
The Netherlands   NEVI Netherlands Manufacturing PMI
This reflected unprecedented growth of both output and employment, and surging inflows of new work.

Firms increased their purchasing sharply in order to support demand, leading to a record increase in their input stocks and further substantial pressure on supply chains.

The latest survey also highlighted greater inflationary pressures, with both input and output prices increasing at faster rates.

The headline NEVI Netherlands Manufacturing PMI is a composite single-figure indicator of manufacturing performance.

It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

Any figure greater than 50.0 indicates overall improvement of the sector.

The PMI rose to an all-time high of 62.4 in November, from 60.4 in October, easily surpassing the previous record of 60.7 set back in February 2011.

This signalled a strong improvement in business conditions at Dutch manufacturers, and further extended the current survey-record sequence of growth to 53 months.

Four of the five components of the PMI boosted the headline figure in November, with three also posting new highs – output, employment and stocks of purchases.

New orders increased at the joint-second fastest rate since the survey started in March 2000, one that was only fractionally slower than the record posted in February 2011.

Firms widely reported winning new work, with export demand highlighted in particular.

New export business increased at the fastest rate since February 2011.

Surging new orders led to a record increase in manufacturing output in November.

Notably sharp rates of expansion were registered for intermediate and investment goods.

Manufacturers boosted capacity in November by raising both employment and stocks of purchases at record rates.

The volume of inputs ordered during the month rose at the fastest rate in over sixand-a-half years, contributing to a further marked lengthening in suppliers’ delivery times as firms reported shortages at vendors.

Backlogs of work increased at the fastest rate in over ten-and-a-half years.