The Dutch manufacturing activity continued to shrink in September and at the steepest pace in more than three years amid weaker demand conditions, survey results from S&P Global showed on Monday.
The Nevi manufacturing Purchasing Managers' Index dropped to 43.6 in September from 45.9 in the previous month. Any reading below 50 indicates contraction in the sector.
Output declined for a seventh successive month, and the rate of decline was the fastest since May.
The fall in production was largely attributed to lower new orders, which declined at the quickest rate in three months. Foreign markets also had weak demand, with new export orders decreasing significantly in September.
As a result of weak demand, Dutch manufacturers reduced employment for the fourth consecutive month. The pace of job cuts was strong and the fastest since July 2020.
On the price front, purchasing costs fell substantially as a result of excess capacity and lower demand for inputs due to the falls in the price of energy and raw materials. Consequently, firms reduced their output prices in order to become more competitive.
