The Dutch manufacturing activity contracted sharply in October amid solid declines in output and order book volumes, survey data from S&P Global showed on Wednesday.
The Nevi manufacturing Purchasing Managers' Index edged up to 43.8 from 43.6 in September. A score below 50.0 signals contraction.
Production dropped at the strongest pace since May 2020 and new orders dropped further. Sharp falls in production levels as well as new business were key drags on the headline index.
There was a substantial fall in input buying in October. Companies also posted a fresh decline in holdings of finished goods. Further evidence of excess capacity was signaled by good producers working through their backlogs and cutting jobs.
Both input costs and output charges continued to decrease in October. Despite the ongoing deterioration in market conditions, firms were positive in their expectations for output over the coming twelve months.
