Dutch manufacturers received many new orders in June. This surge drove a clear increase in industrial production. The Nederlandse Vereniging voor Inkoopmanagement (Nevi) reported that customers stockpiled goods to beat anticipated price increases. Rapid growth in the artificial intelligence (AI) sector also significantly boosted Dutch industry.
The monthly purchasing managers’ index from Nevi reflects overall business activity. The index reached 55.5 last month. This figure sits slightly below the 55.9 recorded in May. However, it still marks the second-highest level in the past four years. Any reading above 50 signals growth, while a score below 50 indicates contraction in Dutch manufacturing.
Geopolitical strains drive stockpiling
Nevi attributed the high score largely to a sharp rise in new contracts. Escalating tensions in the Middle East will likely drive up commodity prices soon. Consequently, clients are hoarding materials now to lock in lower costs before these increases take effect.
ABN AMRO sector economist Albert Jan Swart highlighted how AI investments directly benefit suppliers in the semiconductor industry. He noted that surging global demand for microchip machinery triggered substantial growth in domestic production over recent months. Furthermore, the Dutch index outpaced comparable industrial benchmarks across Germany and the wider eurozone.
Rising costs passed to consumers
Manufacturers faced higher expenditures for energy, transport, and raw materials due to regional conflicts. However, the purchase prices they paid actually rose at the slowest rate since the outbreak of hostilities. At the same time, producers passed a larger share of these cost increases onto their customers. This strategy led to the sharpest rise in factory-gate selling prices since October 2022. ——————————
@ anp | NEWS BRAINPORT
