Industrial activity contracted again in November. This can be seen from the monthly index of the Dutch Association of Purchasing Managers (Nevi). According to the index, there is lower production volume, less new orders and decline in purchases. And this while employment was growing again. “You see a dichotomy within the industry,” says ABN Amro sector economist David Kemps.
‘You can see that new orders in particular are down sharply again. You see a dichotomy within the industry, especially the energy intensive industries like chemicals, paper and board and base metals that are really struggling with high energy prices. And that while machine builders and high-techs have little trouble with it.’
Power
However, Kemps doesn’t just want to blame the sharp rise in energy prices for the decline: ‘Energy accounts for thirty percent of this index, we also see that prices continue to rise, but also that production volumes are decreasing. . This is probably because shares that have risen so much during and in the months since corona are now reducing them.”
Dutch manufacturers expanded their workforce in November. Staff recruitment also differed by industry. There has been strong growth in the capital goods sector, which includes machines and computers. The increase in consumer goods was limited. There has been no change in the chip industry.
Eurozone
The industrial index for the entire Eurozone showed a final reading of 47.1 for November. This again points to a contraction in activity. A level of 50 or higher indicates growth. Market researcher S&P Global’s figure is better than in October, when it was 46.4. According to S&P Global, the drop in new orders has slowed and supply chain problems have eased, which has also helped ease price pressures. The agency says the economic downturn in the euro area could be less severe than previously feared.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
