Netherlands: Manufacturing PMI rises in May
The Nevi Netherlands Manufacturing Purchasing Managers’ Index (PMI) improved to 52.5 in May from 51.3 in April. As a result, the index moved further above the 50.0 no-change threshold, signaling a faster improvement in manufacturing-sector operating conditions compared to the previous month.
May’s upturn stemmed from a significant rise in new orders, which grew at the fastest pace in over two years, driven by better demand conditions, particularly in the construction sector. This led to a sharp increase in production volumes, the quickest since April 2022. Meanwhile, the manufacturing sector saw a rise in employment for the fourth consecutive month, although the rate of job creation cooled from April. Despite these positive developments, there was a continued depletion of input stocks and unchanged purchasing activity.
On the pricing front, May saw a notable pickup in cost pressures, with input prices increasing sharply due to higher raw material and energy prices. This led firms to raise their selling prices for the fifth consecutive month—and at a faster rate. Meanwhile, business sentiment in the Dutch manufacturing sector remained positive, with firms expecting output to rise over the year ahead, driven by new project launches and growth expectations. However, the degree of optimism declined slightly from April’s 26-month high.