Dutch Manufacturing PMI Drops in August, but Still Strong at 53.9
Manufacturing growth is varied across the Eurozone
In the previous part of this series, we looked at the manufacturing PMI (Purchasing Managers’ Index) reports for the big-four Eurozone economies. Markit Economics also reported PMI figures for other Eurozone (VGK)(HEDJ) economies, including Poland, Turkey, the Netherlands, and the Czech Republic. Let’s take a quick look at these figures.
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The Polish (EPOL) economy, which serves as a manufacturing hub for Germany, showed some easing in August. The headline PMI index for manufacturing in Poland dropped from its four-month high of 54.5 in July to 51.1 in August. New export orders and output grew marginally in Poland in August. Economic momentum was down as companies cut purchasing activity. However, the employment component gained well, indicating strength in workforce growth.
The Czech Republic PMI
The manufacturing PMI eased from its four-year high in the Czech Republic but continued to indicate strong improvement in business conditions. The Markit Czech Republic Manufacturing PMI stood at 56.6 in August, backed by strength in output, new orders, and employment conditions. The conditions weakened, however, from July, which recorded a 57.5.
The Netherlands PMI
Business activity dropped to a five-month low in the Netherlands in August. The NEVI Netherlands Manufacturing PMI reading was 53.9 in August, a dip from July’s 56.0 but quite strong considering the neutral level of 50.0. Figures above 50 indicate expansion in business activity, while those below 50 indicate a contraction. Production and output slowed, while employment moderated, although purchasing activity signaled a good pace of growth in overall business orders. Royal Dutch Shell (RDSA), ING Groep (ING), and Koninklijke Philips (PHG) are some popular companies based in the Netherlands.
September 1 saw manufacturing contract in Turkey (TUR) despite a rise in exports attributable to the weak lira. Business conditions seemed deteriorated in the economy in August, as the headline Markit Turkey Manufacturing PMI figure came in at 49.3 in August, down from July’s 50.1. Manufacturing production eased in Turkey in August after expanding in July.
Moving east, we see that Markit also reported PMI numbers for China and Japan. Let’s analyze these reports in the next part of this series.