Amid the close of the year, Dutch manufacturing activity remained in a state of contraction, although the rate of decline showed signs of easing due to slower decreases in both output and new orders, according to survey data released by S&P Global on Thursday.
The Nevi Manufacturing Purchasing Managers' Index climbed to 48.6 in December, up from 46.6 in November. Nevertheless, readings below 50 signify contraction within the sector.
This period of economic downturn led to a continued fall in new orders in December, marking the slowest contraction rate in five months. New export orders also experienced further decline due to weak demand from Northern Europe and Germany.
In response, Dutch manufacturers reduced production levels, influenced by inventory depletion, subdued demand, and shortages in raw materials. Although the pace of decrease moderated, it remained faster than the 2024 average.
From a pricing perspective, input costs rose for the first time in three months, resulting from heightened material and transportation expenses. To stimulate sales, companies opted to further reduce their selling prices in December.
Looking forward, manufacturers maintain an optimistic outlook for output over the next year, supported by expectations of improving international market conditions and a resurgence in demand from key sectors in the months to come.
The material has been provided by InstaForex Company -
www.instaforex.com
