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Financial News: Dutch Manufacturing Activity Remains In Contraction

Dutch Manufacturing Activity Remains In Contraction

02/03/2025 - 09:00:00 (RTTNews)

(RTTNews) - The downturn in the Dutch manufacturing sector continued at the start of the year, survey results from S&P Global showed on Monday.

The Nevi Manufacturing Purchasing Managers' Index dropped to 48.4 in January from 48.6 in December. Any score below 50 indicates contraction in the sector.

The continued downturn in January was driven by weak demand conditions. New orders fell slightly faster than in December amid a sharper decline in export sales. As a result, firms scaled back their production levels.

The decline in work outstanding extended the trend of depletion to exactly two years. This tempted manufacturers to go for a further round of job shedding in January.

Supply side pressures persisted in the Dutch factory sector, reflecting raw material shortages and understaffing issues at vendors.

On the price front, input price inflation rose to the highest level since August last year, driven by greater raw material, wage, and transportation costs. Consequently, selling prices inflation soared to its strongest for two years.

On a positive note, Dutch goods producers remained increasingly optimistic about output expectations over the next year amid hopes of improved economic conditions, new client wins, and growth plans reportedly underpinned optimism.

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