The latest data from S&P Global, released on Monday, indicate that Dutch manufacturing activity remains in the growth zone, although there are signs of slowing demand. The Nevi Manufacturing Purchasing Managers' Index (PMI) fell to 50.7 in June from 52.5 in May. It's important to note that a PMI above 50 still signifies sector expansion.
In June, the growth in new orders decelerated from a 25-month high in May, partly due to a renewed decline in international sales. Consequently, production volumes rose at a more subdued rate.
Despite the slowdown, firms continued to increase their workforce numbers in June to meet output requirements and future growth plans. However, purchasing activity declined again as companies deliberately cleared out stock levels.
On the pricing front, input price inflation edged up to the highest rate observed in nearly a year and a half. This increase was fueled by higher costs for raw materials and rising wage pressures, leading to the most substantial rise in selling prices in fifteen months.
