Dutch manufacturing activity contracted less sharply in January than in previous months. According to data from the Dutch Association of Purchasing Managers (NEVI), this is the smallest contraction in five months. The industry was helped, among other things, by an increase in production. It’s up slightly for the first time in six months.
The Nevi’s so-called Purchasing Managers’ Index rose last month to a level of 49.6 from 48.6 in December. A level of 50 or more indicates growth, below that contraction. The gauge fell below 50 for the first time in two years in September, implying a contraction in industrial activity.
The Nevi says new orders showed the smallest drop in six months, as did export orders. Buying activity fell again, but at the lowest rate in five months. Manufacturing employment also continued to rise and business optimism about the future is at an eleven-month high.
Improvement
In an explanation, ABN AMRO industry economist Albert Jan Swart says the industry is finally seeing an improvement in the supply of parts and materials. In January, delivery times decreased for the first time since 2019. And for the first time since July last year, Dutch industrial production grew slightly compared to the previous month, thanks in part to improved material supplies.’ says Swart.
According to him, energy-intensive industries such as the paper, base metals and chemical industries are still in a difficult position, but the consequences of the energy crisis are much less painful than a few months ago, mainly thanks to the winter mild in Europe. “Some factories that stopped production last summer may be able to restart soon. Apart from that, the near future looks much brighter for the vast majority of Dutch industry,” reports Swart.
Source: BNR
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