Netherlands: Manufacturing PMI falls in June, but remains above threshold
The Nevi Netherlands Manufacturing Purchasing Managers’ Index (PMI) fell to 50.7 in June from 52.5 in May. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in manufacturing-sector operating conditions compared to the previous month.
The decrease was primarily due to a softer increase in new orders—amid a notable drop in international sales—which contributed to a slower pace of production growth. Meanwhile, the sector faced additional challenges such as a decline in supplier performance for the first time since December 2022 and a continued decrease in purchasing volumes, pointing to cautious inventory management and potential concerns about future demand. Despite this, employment levels continued to rise.
Inflationary pressures remained strong in June, with significant increases in input costs, particularly for raw materials and wages, driving up output prices at one of the sharpest rates in over a year. Despite these cost pressures, Dutch manufacturers maintained a positive outlook for the future. That said, this optimism showed signs of weakening, falling below the long-term average for the second consecutive month.