In August, the downturn in Dutch manufacturing deepened, with sharper declines in both output and new orders, according to survey data released by S&P Global on Monday.
The Nevi Manufacturing Purchasing Managers' Index fell to 47.7 in August from 49.2 in July, signaling a contraction in the sector, as any score below 50 indicates.
The downturn affected a broad range of areas, with significant declines in new orders, output, and employment—the most severe drops recorded this year, the agency reported.
The weak demand environment was largely due to customer hesitancy. Additionally, export demand decreased, prompting firms to scale back their production volumes even further.
In terms of pricing, input price inflation remained high because of increased costs for raw materials and wages. Consequently, selling prices also rose substantially in August.
Despite the current challenges, firms expressed confidence about future output expectations, driven by new product launches, growth ambitions, and optimism for a market recovery.
In separate official data, retail sales saw a 2.6 percent annual increase in August, recovering from a 0.8 percent decline in July. Sales of non-food products grew by 3.4 percent, while food product sales rose by 1.1 percent.
