Manufacturing in the Netherlands eases to eight-month lowStaff Writer | June 7, 2018
Dutch manufacturing business conditions continued to improve strongly in May, according to the latest PMI survey data from NEVI and IHS Markit.
The Netherlands Growth rates for new orders and output picked up slightly
Growth rates for new orders and output picked up slightly, though this was more than offset by weaker job creation and less pressure on supply chains.
Backlogs continued to grow solidly.
Inflationary pressures remained sharp, but eased further since the start of 2018.
The 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 fell to an eight-month low of 60.3 in May, from 60.7 in April.
The latest figure nevertheless signalled that Dutch manufacturers continued to experience rapidly improving business conditions, and was the ninth-highest since the series started in March 2000.
Business conditions have improved continuously since July 2013.
New orders rose further in May, extending the current sequence of growth to 27 months.
The pace of expansion was strong and picked up slightly since April, but was weaker than those registered between August 2017 and March 2018.
New export orders also increased at a faster rate.
Dutch manufacturing output continued to expand sharply in May.
Production has risen continuously for over five years, a survey-record sequence.
Moreover, the rate of expansion accelerated to the fastest since it hit a survey record in February.
Growth remained strongest in the investment goods sub-sector.
The rate of manufacturing employment growth eased for the third month running from the record pace shown in the first two months of 2018, to a nine-month low.
That said, it was still the tenthstrongest seen over the entire survey history.
Pressure on manufacturing capacity remained strong in May, as backlogs of work increased at a solid rate and for the tenth successive month – the longest sequence in 11 years.
Meanwhile, suppliers’ delivery times lengthened markedly, albeit less so than in March and April.
Inflationary pressures remained strong in May.
Input price inflation slowed to an eight-month low, but remained among the strongest registered over the past seven years.
Similarly, output prices rose at the weakest rate in five months, but one that was strong overall.
Output expectations among Dutch manufacturers remained strongly positive in May, but eased to a 13-month low. ■