Netherlands: Manufacturing PMI drops below threshold in July
The Nevi Netherlands Manufacturing Purchasing Managers’ Index (PMI) fell to 49.2 in July from 50.7 in June. As a result, the index moved below the 50.0 no-change threshold, signaling a deterioration in manufacturing-sector operating conditions compared to the previous month.
The downturn in the Dutch manufacturing sector was primarily driven by the sharpest decrease in new order volumes seen this year, partly due to weaker demand from abroad. The subdued demand environment led firms to cut both purchasing activity and production volumes, the latter also reportedly suffering from adverse weather conditions.
Regarding prices, July saw a notable increase in cost pressures, with input price inflation reaching its highest rate since late 2022 due to higher raw material, wage and shipping costs. In turn, Dutch manufacturers passed some of these increased costs onto their customers. On a positive note, the sector’s outlook improved slightly, with manufacturers expressing confidence that output would grow over the next 12 months, supported by plans for new product launches and expansion into new markets.