News
PMI at highest level in 32 months, decline employment ends
The Purchasing Managers’ Index (PMI) reached 57.8 in March, a significant rise compared to the previous month when the index quoted 55.2. That is the highest level since July 2007.
For the sixth month in a row this important leading indicator that renders the status of the Dutch industrial sector rose. It is striking that now both the partial indices of the production range as well as the employment improved.
Companies that were hiring, indicatied that this was the result of an increase of the amount of work. The number of new orders hugely increased due to a larger demand from the Netherlands as well as abroad.
The production rose sharply to be able to meat the greater demand. The producers increased their selling prices, the buying price inflation was significant. For the first time in a long time employment remained the same in March.
The arrears in production increased more quickly. This indicates that there is little room to manoeuvre with the current production capacity. Although the purchasing activities in March had a duely growth, the stock of purchased materials increased.
In conclusion it seems that for the time being there seems to be a V-pattern in the economic revival: following the profound decline, at least industry has found its way back to the surface. For an increase of the economic growth it is now necessary for employment and investments in the Netherlands to tighten considerably over the full length and no cost cuttings on short term. Otherwise the V-pattern might change into a W-pattern.
About NEVI PMI…
The NEVI Purchasing Managers’ Index is a combined index designed to get an overall image of the economic activities in the various industries. A PMI score of under 50.0 indicates an increase of the industrial activity, a score above the critical point of 50.0 indicates a growing economy. A score of 50.0 indicates that no changes have occured. The larger the aberration of 50.0, the larger the degree of change in the index.