AMSTERDAM (dpa-AFX) - The Netherlands' manufacturing sector contracted at the fastest rate in over six-and-a-half years in December, survey results from IHS Markit showed on Thurday.
The NEVI Manufacturing purchasing managers' index, or PMI, fell to 48.3 in December from 49.6 in November. Any reading below 50 indicates contraction in the sector. The latest reading was the lowest since April 2013 and among the lowest-seen since late-2009.
Production declined for the third month in a row in December and at the sharpest rate since May 2009. Order book volumes decreased sharply and at the fastest pace for over seven years, mainly due to increased competition and weak client demand. New orders from abroad fell further.
In December, the number of workforce were reduced for the first time since February 2015, but the rate of job shedding was only slight, while the backlogs of work continued to decline.
On the prices front, cost burdens rose in December after falling for two months in a row. Average prices charged by manufacturers increased and the rate of charge inflation was modest.
Purchase activity fell for the third straight month in December, and the rate of decline was the fastest since May 2013.
The level of positive sentiment rose to the highest in three months in December, remaining historically subdued overall.
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