The Netherlands’ consumer price inflation slowed to the lowest in nearly a year in January and the downturn in manufacturing softened on renewed expansion in production, separate data revealed Wednesday.
Consumer prices rose 7.6 percent from the previous year, slower than the 9.6 percent increase in December, the flash estimates from Central Bureau of Statistics showed. This was the lowest rate since last February, when inflation was 6.2 percent.
Prices of consumer goods and services were 9.6 percent more expensive than a year ago. Final data is due on February 9.
Inflation, based on the harmonized index of consumer prices, slowed to 8.4 percent in January from 11.0 percent in December.
Flash inflation data for the euro area is due today. Eurozone inflation is expected to moderate to 9.0 percent in January from 9.2 percent in December.
In January, the Dutch manufacturing sector contracted at a slower pace as there was an improvement in production and new orders posted a slower fall, survey results from S&P Global showed.
The manufacturing Purchasing Managers’ Index rose to 49.6 in January from 48.6 in December. The pace of fall was the softest in the current five-month sequence of contraction.
Output expanded for the first time in six months as the improvement in supply chains helped manufacturers to boost production capacities. Moreover, orders dropped at the slowest pace in five months. Similarly, the fall in export orders also softened.
Firms reduced their purchasing activity at the slowest rate in five months. On the other hand, their holdings of inputs and semi-finished goods grew slightly.
The degree of confidence regarding future output strengthened to an 11-month high in January. Companies were planning to expand their businesses, scale up production and develop new products.
Manufacturers continued to lift their workforce, extending the current sequence of job creation to 27 months.
Regarding prices, the survey showed that average input costs and selling prices continued to increase in January. That said, rates of inflation dipped to 27- and 23-month lows, respectively.
Source: Read Full Article