News
Marked recovery in new orders as exports grew at sharp rate
The headline seasonally adjusted NEVI Purchasing Managers’ Index™ (PMI™)
Key findings:
- Output growth quickened from September;
- Increased employment as firms expanded production capacity;
- Rate of output price inflation fastest in six months.
The headline seasonally adjusted NEVI Purchasing Managers’ Index™ (PMI™) – a composite indicator designed to provide a single-figure snapshot of the performance of the manufacturing economy – rose modestly in October to 55.4, up from 52.9 in September. Marked growth in new orders, particularly from abroad, encouraged firms to expand production capability and raise factory gate prices. However, manufacturers continued to face steep inflation of their input costs.
Dutch manufacturing firms increased their output during October, as monitored companies commented on greater demand and higher new orders. The rate of new orders growth recovered from September’s seventeen-month low, with survey respondents attributing this to larger orders from clients and successful investments. In particular, growth in new export orders rose sharply to the fastest pace since May, with many firms reporting higher orders from clients based in Europe.
As growth in new orders was faster than that of output, firms used existing stocks of finished goods to help meet demand. This reduced the level of stock holdings at the fastest rate in seven months. Meanwhile, survey respondents reported a marginal reduction in backlogs of work during October.
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