FX.co ★ Dutch Factory Activity Contracts in March

The Nevi Netherlands Manufacturing PMI registered at 49.6 in March, indicating a marginal decline in the operating conditions of the Dutch manufacturing sector after a period of stability in February. This slight dip was largely influenced by a small decrease in order books, which was only partly offset by a renewed increase in production volumes. Manufacturers continued to downsize, reducing both staffing levels and purchasing activities, due to signs of surplus working capacity and excess inventory. Regarding pricing, operational expenses climbed, driven by labor and raw material costs; however, this cost inflation remained slightly lower than the long-term average. Output prices rose significantly as manufacturers attempted to offset increased costs by passing them on to their customers. Looking forward, confidence in the 12-month output outlook, while still in positive territory, declined and dropped below its long-term trend.