FX.co ★ Dutch Manufacturing Sector Deteriorates In July

The Dutch manufacturing sector experienced a contraction in July, driven by a renewed decrease in new orders, according to the latest survey results from S&P Global, released on Thursday.

The Nevi Manufacturing Purchasing Managers' Index (PMI) slipped to 49.2 in July from 50.7 in June. Scores below 50 indicate a contraction in the sector.

The survey highlighted that the fresh decline in new orders prompted firms to reduce both production volumes and inventories. Additionally, new export orders fell due to weak demand from international clients.

Output decreased at the fastest rate this year, influenced by softer demand and unfavorable weather conditions.

Regarding prices, input price inflation surged to its highest level since December 2022, attributed to increases in wages, raw material expenses, and shipping costs. Conversely, selling price inflation eased to its lowest level in three months.

On a positive note, manufacturing employment rose, and future output expectations improved.

In other economic news, the Netherlands' retail sales dropped by 0.7 percent year-on-year in June, reversing a 2.4 percent growth in May. This marked the first decline since February 2023, as reported by the Central Bureau of Statistics.