AMSTERDAM, Nov 2 (Reuters) - The Dutch manufacturing sector expanded slightly in October while output growth was the fastest since December 2007, a survey showed on Monday.
The seasonally adjusted NEVI Purchasing Managers' Index (PMI), which is compiled by Markit, rose to 50.5 in October from 50.0 in September. The index has now been at or above the line that separates growth from contraction for three months.
Markit said the surge in production growth -- to 53.7 from 51.3 the previous month -- was driven by growth in new orders, primarily from abroad, and a reduction of work backlogs.
However, job-shedding across the manufacturing sector persisted at a substantial rate little changed from the previous two months
The survey also noted an acceleration in input price inflation -- led by steel, nickel, oil and plastics -- that was accompanied by a sharp decline in factory gate prices.
"Without a pick-up in domestic demand, competition may continue to push down charges, which is likely to constrain margins as input prices rise," said Markit economist Gemma Wallace. "This could have adverse effects on employment." said Markit economist Gemma Wallace. (Reporting by Ben Berkowitz; editing by Stephen Nisbet)