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Dutch PMI rises to new peak as manufacturing boom continues

Staff Writer | March 8, 2018
Dutch manufacturers experienced another record improvement in business conditions in February, according to the latest PMI survey data from NEVI and IHS Markit.
Dutch manufacturers
The Netherlands   NEVI Netherlands Manufacturing PMI
The headline PMI hit a new peak for the third time in four months, led by unprecedented growth of output, a record lengthening in supplier delivery times and a jointrecord expansion in employment.

New business growth was the fourth-fastest on record, despite a softer increase in exports.

The latest survey data also revealed the slowest inflation of input prices in five months, and sentiment remained unchanged from January’s record high.

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 surged to a new record high of 63.4 in February, up from January’s 62.5, signalling that Dutch manufacturers continued to experience a rapid improvement in business conditions at the start of 2018.

Three of the five components of the headline figure were at record levels in the latest period, namely output, suppliers’ delivery times and employment (joint-record high).

Moreover, the new orders and stocks of purchases indices were at the fourth- and third-highest levels to date respectively.

Dutch manufacturing output rose at the fastest pace since the survey began in March 2000.

Production has risen continuously for 58 months, also a survey record.

The intermediate goods sub-sector registered the strongest growth.

Supporting the surge in manufacturing output was a further rapid increase in new orders.

The pace of expansion was the fourth-fastest registered to date, and the strongest since last November.

Data also signalled a marked rise in new export business, albeit the weakest since last October.

The rate of manufacturing employment growth was unchanged from January’s record pace.

This contributed to the slowest rise in backlogs in five months, although growth in outstanding work remained relatively solid.

Suppliers’ delivery times lengthened to an unprecedented extent in February, reflecting strong demand for inputs - the volume of purchasing activity increased at the fastest rate since April 2011.

Reflecting tight supply chains, input prices rose sharply, albeit at the weakest rate since last September.

Meanwhile, output prices increased at the second-fastest rate since May 2011.