In October, Dutch manufacturing activity experienced a sharp decline amid weakening demand, according to recent findings by S&P Global released on Friday. The Nevi Manufacturing Purchasing Managers' Index fell to 47.0 in October, down from 48.2 in September, indicating contraction with any figure below 50.0.
The rate of new orders plummeted to its lowest this year, attributed to sluggish demand and diminished client confidence. The data revealed a continued drop in output for the fourth consecutive month.
International demand also dropped significantly, reaching its most rapid decline in over a year, primarily due to decreased orders from Germany. Consequently, companies further cut back on purchasing activities, inventory levels, and workforce numbers.
Regarding pricing, there was a tapering off in input price inflation in October, aided by decreased shipping costs. Similarly, selling prices increased at their slowest rate in seven months.
Looking to the future, companies stayed optimistic about output expectations for the upcoming year, driven by growth ambitions and investment plans. However, the level of confidence reached its lowest this year.
In other news, Dutch retail sales increased at a faster annual rate of 2.6 percent in September, compared to a 2.2 percent rise in August, marking the third consecutive increase. Non-food product sales climbed by 5.2 percent, whereas sales in the food sector, including food and luxury goods stores, decreased by 1.8 percent, the Central Bureau of Statistics reported.