Netherlands: Stockpiling supports manufacturing growth – ABN Amro

ABN Amro's Albert Jan Swart notes that Dutch manufacturing is expanding strongly, with the Nevi Dutch Manufacturing PMI jumping to its highest level since 2022 as companies stockpile due to Middle East supply disruptions. Rising domestic demand, higher prices and larger inventories are lifting output but also working-capital needs, while sentiment remains cautious given geopolitical risks and energy-driven uncertainty into 2026.

Stockpiling and AI drive Dutch industry

"As long as the Strait of Hormuz remains effectively closed to shipping, supply chains will become ever more severely disrupted."

"Demand for Dutch manufactured products is rising at the fastest pace in almost two years. Foreign demand, however, is increasing only modestly. Growth appears to be driven mainly by domestic stockpiling."

"Despite rising demand and production, sentiment remains subdued. Expectations for production over the next twelve months improved only marginally. Apparently, industrial business owners are still apprehensive, even after the provisional ceasefire between the United States and Iran."

"Because of the energy crisis resulting from the war with Iran, the recovery in 2026 remains uncertain, but for now Dutch manufacturing still appears to be on track for strong growth."

"Dutch manufacturing is growing faster than German manufacturing, as is evident, among other things, from the flash purchasing managers’ index for Germany from S&P Global."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)