April data from the NEVI/DPA Purchasing Managers’ Index Report indicated further robust expansion of the Dutch manufacturing economy. The seasonally adjusted NEVI/DPA PMI posted 56.4 in April, down from 58.5 in the previous month, signaling an improvement in operating conditions for the 22nd consecutive month.
Output and demand
Output growth in the
Promotional and marketing activities by Dutch manufacturers contributed to the rise in incoming new business in the latest survey period. That said, the rate of growth was the slowest in 2007 so far. Strong demand from customers in a number of European Union countries boosted sales in export markets.
Employment
Dutch manufacturers increased staffing levels at a marked rate in the latest survey period, which survey respondents linked to higher production requirements.
Prices
Panel members signaled a sharp rise in their average costs in April, as the rate of input price inflation reached a five-month high. There were reports of higher wage costs and rising prices for oil and various metals.
Although output price inflation eased from March’s series high in April, panelists continued to increase factory gate prices at a marked rate. Anecdotal evidence suggested that Dutch manufacturers had raised their charges due to favorable market conditions.
Stocks of purchases and finished goods
Higher volumes of new orders led to a further fall in post-production inventory levels in April. That said, the rate of decline eased slightly to its lowest since last October. Rising levels of input buying by Dutch manufacturers contributed to a marginal increase in stocks of purchases. Anecdotal evidence linked increased purchasing activity to higher production requirements.
Supplier performance
Greater purchasing activity contributed to a further sharp deterioration of average vendor performance in April. Average delivery times have now lengthened for 44 consecutive months.
