PMI fra S&P Global – for Holland:
“The Nevi Netherlands Manufacturing PMI has improved marginally, from 43.6 in September to 43.8 in October. This is still a very low score, signalling a continued marked decline of business activity. “Dutch purchasing managers continued to hit the brakes in October. Many industrial firms still hold excess inventories that must be unwound. Firms also need less material because of weak demand.
New orders continued to drop fast, and firms reduced output further. “Apart from post-pandemic excess inventories, slower economic growth and high interest rates also slow down the manufacturing sector. The unwinding of excess inventories leads to lower demand for semi-finished goods, such as metal and rubber parts. Still, purchasers were more optimistic in October.
Regarding the expectations around production twelve months from now, purchasing managers have not been this optimistic since May. Some respondents are looking forward to future projects. “There is also good news regarding inflation. Both input and output prices continued to drop. Higher interest rates make financing investment more expensive, which leads to much lower demand for industrial goods, such as building materials and machinery.
The European Central Bank (ECB) noted last week that the eurozone economy’s performance is weak. “ABN AMRO expects the economy to remain weak in the short term, which should lead to lower inflation. As soon as inflation seems under control, the ECB can start lowering the interest rate, which might lead to higher demand for industrial goods and a gradual recovery in 2024.”
