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Financial News: Dutch Manufacturing Growth Rises In January

Dutch Manufacturing Growth Rises In January

02/01/2021 - 06:50:00 (RTTNews)

(RTTNews) - The Dutch manufacturing sector rose slightly in January, survey results from IHS Markit showed on Monday.

The NEVI manufacturing Purchasing Managers' Index, or PMI, rose to 58.8 in January from 58.2 in December. Any reading above 50.0 indicates expansion in the sector.

Output rose at the sharpest since September 2018 and backlogs of work accumulated for the second month in a row. The number of employed increased in January, but the rate of job creation remained mild.

Production increased in January and suppliers' delivery time lengthened.

Cost burden increased in January and the rate of inflation was the sharpest in two years. Factory gate charges rose at a solid pace.

The 12-month outlook improved with the sentiment rising to the strongest since April 2018, on the hopes of looser Covid-19 restrictions.

"The past year has put financial stress on many firms' balance sheets," Albert Jan Swart, manufacturing sector economist at ABN AMRO, said.

"Some firms might need additional capital to deal with the sudden output growth," Swart added.

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