AMSTERDAM (dpa-AFX) - The Dutch manufacturing sector contracted at a softer rate in June, survey results from IHS Markit showed on Wednesday.
The NEVI manufacturing Purchasing Managers' Index, or PMI, rose to 45.2 in June from 40.5 in May. This was the softest rate of decline in the three months sequence of deterioration. Any reading below 50 indicates contraction in the sector.
Output and new orders fell at a slower pace in June and manufacturing production declined sharply. New export orders decreased at a softer pace.
The number of staffs decreased in June and the level of outstanding business continued to decline with the rate of backlogs of work depleting for the second-fastest over eight years.
Pre-production inventories fell for the second month in a row in June, while stocks of finished goods remained unchanged.
Cost burden declined in June and the rate of reduction was the quickest since March 2016. Average charges fell for the second straight month.
Firms turn cautiously optimistic on production for the next 12 months in June and sentiment remained subdued.
'Thanks to the lifting of lockdowns in many European countries, entrepreneurs look at what is ahead in 2021 with more confidence,' Albert Jan Swart, Manufacturing Sector Economist at ABN AMRO, said.
'It is clear that many businesses are hoarding cash in order to survive this short but severe crisis.'
Copyright RTT News/dpa-AFX
© 2020 AFX News
