BRUSSELS (dpa-AFX) - Dutch manufacturing activity expanded at the quickest pace in almost four years due to a pickup in demand, amid efforts to build safety stocks as supply chain conditions deteriorated further, survey data from S&P Global showed Monday.
The Nevi Manufacturing Purchasing Managers' Index rose to 55.9 in May from 54.4 in April.
Among components, output and new order growth were the strongest in just over four years. The increase in new orders was attributed to stockpiling efforts by customers amid disruptions to supply chains caused by the war in the Middle East.
In line with stronger demand and output, firms raised their purchasing activity and workforce numbers in May. Input buying grew at the fastest rate in four years as firms looked to build safety stocks amid ongoing supply chain disruption.
On the price front, input price inflation intensified as the war in the Middle East pushed up prices for fuel and oil-related materials. As a result, selling price inflation remained sharp and most marked, in fact, in over three-and-a-half years.
Separate official data from Statistics Netherlands showed that annual retail sales growth improved to 3.4 percent in April from 3.2 percent in March. Sales in the non-food sector advanced 3.5 percent, and those in the food sector increased by 3.2 percent. Online sales were 5.9 percent higher compared to last year.
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