Manufacturing growth cools to nine-month low in the Netherlands
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 a nine-month low of 60.1 in June, from 60.3 in May.
The latest figure nevertheless signalled that Dutch manufacturers continued to experience rapidly improving business conditions, and was the tenth-highest since the series started in March 2000.
Business conditions have improved continuously since July 2013.
New orders rose further in June, extending the current sequence of growth to 28 months.
The pace of expansion was strong and picked up to a three-month high, but was weaker than those registered between November 2017 and March 2018.
New export orders also increased at the fastest rate in three months.
Dutch manufacturing output continued to expand sharply in June.
Production has risen continuously for over five years, a survey-record sequence.
Moreover, the rate of expansion accelerated to a four-month high.
Growth remained strongest in the investment goods sub-sector.
The rate of manufacturing employment growth eased for the fourth month running in June to a tenmonth low.
That said, job creation remained relatively strong.
Dutch manufacturing capacity remained under pressure in June, as backlogs of work increased for the eleventh successive month – the longest sequence in over 11 years.
Meanwhile, suppliers’ delivery times lengthened to the third-greatest extent on record.
Cost pressures remained strong in June.
Input price inflation accelerated to a five-month high, linked to metals, plastics and paper.
In contrast, output prices rose at the weakest rate in eight months, implying growing pressure on manufacturing profit margins.
Output expectations among Dutch manufacturers remained strongly positive in June, but eased to a 20-month low. ■