The Dutch manufacturing activity expanded at the weakest pace in twenty months in July, as output and new orders rose at slower rates, survey results from S&P Global showed on Monday.
The Nevi manufacturing Purchasing Managers’ Index dropped to 54.5 in July from 55.9 in June. However, a score above 50.0 indicates expansion.
New orders grew at the slowest rate for two years in July, as steep price pressures paired with economic uncertainty weighed on demand growth.
Output growth softened to a 20-month low in July amid weaker inflows of new orders and difficulties obtaining some key inputs.
Manufacturing employment remained resilient despite softer growth in new orders and output. The rate of job creation was marked in July despite easing from June.
Input price inflation softened to an 18-month low in July, though it stayed historically elevated on rising transportation, energy, wage and material costs. Selling prices rose at the slowest rate in fifteen months.
“The energy crisis continues to cause high inflation, which impacts demand,” Albert Jan Swart, manufacturing sector economist at ABN AMRO, said.
“Moreover, the manufacturing sector may be exposed to gas rationing, especially in Germany, which might disrupt supply chains again and impact demand.”
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