Financial News: Dutch Manufacturing Contraction Worsens; Inflation Rises T

Dutch Manufacturing Contraction Worsens; Inflation Rises To 5.2%

(RTTNews) - The Netherlands' manufacturing activity contracted at a faster rate in April amid sharper falls in output and new orders, survey data from S&P Global revealed on Monday.

Separate official data showed that consumer price inflation rose in April after easing to an 18-month low in the previous month.

The Nevi manufacturing Purchasing Managers' Index declined to 44.9 in April from 46.4 in March. Any score below 50.0 indicates contraction.

In April, a combination of falling new orders and improved supply led to a further cooling of inflationary pressures in the Dutch manufacturing sector.

The decline in output was attributed to the sustained reduction in customer demand, as total new orders fell at the fastest pace in five months. The rate of job creation improved only marginally in April.

There was a solid decline in input costs overall, while selling price inflation fell to a 30-month low.

Although Dutch manufacturers were optimistic about their output for the coming year, their level of confidence remained historically low.

Separate data from the statistical office revealed that the country's consumer price inflation climbed to 5.2 percent in April from 4.4 percent in March, which was the slowest rate of growth since October 2021.

Prices for food and non-alcoholic beverages alone grew 13.2 percent annually in April, and costs for services rose 6.1 percent, flash data said.

Another report showed that Dutch entrepreneurs were less positive in April, with the producer confidence index falling from 4.0 in March to 3.0. This was mainly because they were less positive about the order book and the expected activity.

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