Dutch Factory Growth Eases Slightly in June

The Nevi Netherlands Manufacturing PMI eased to 54.4 in July 2026 from 55.5 in the previous month, marking the lowest reading since April, but still signalled a strong improvement in operating conditions. The index remained above 50 for the 14th straight month and was among the highest readings in four years. Output growth was the main driver, reaching its fastest pace since February 2022, supported by sustained new order growth and stronger demand. However, total and export order growth softened. Manufacturers increased input purchasing to support production, while stocks of purchases fell as firms used existing inventories. Supply chain disruptions linked to the Middle East conflict persisted, pushing up delivery times and input costs, though inflation eased to four-month lows. Employment continued to rise, backlogs increased for the third time in four months, and confidence recovered above its historical average as firms expected stronger demand and improved economic conditions.

The Nevi Netherlands Manufacturing PMI edged down to 55.5 in June 2026 from 55.9 in May, remaining the second-highest reading in four years and signaling another strong improvement in factory activity. Growth was driven by robust new orders as firms cited new projects, stronger customer demand, and stockpiling ahead of expected price increases amid supply chain disruptions linked to the Middle East conflict. Output continued to expand on domestic and export demand, while employment rose for a second straight month at the fastest pace in nine months. Backlogs of work increased at the strongest rate in four years despite efforts to expand capacity. Firms also boosted purchasing and inventories against supply shortages, although delivery delays remained severe. On the price front, input cost inflation eased to its lowest since March but remained elevated due to higher energy, raw material, and transport costs, while output price inflation hit its strongest since October 2022.

The Nevi Netherlands Manufacturing PMI rose to 55.9 in May 2026 from 54.4 in April, marking its highest level in nearly four years and signaling a further strengthening in factory activity. New orders increased at the fastest pace in over four years as customers built safety stocks and brought forward purchases amid supply chain disruptions linked to the Middle East conflict. Export demand also improved, though at a slower pace than overall orders. Stronger demand drove the fastest growth in manufacturing output in just over four years, prompting firms to raise purchasing activity at the quickest rate in four years and increase staffing levels. Supply chains remained under pressure, with delivery times lengthening at the sharpest pace since May 2022. Input cost inflation accelerated to a more than four-year high, while output price growth remained the strongest in over three-and-a-half years. Business confidence also improved, rising slightly above its historical average.