AMSTERDAM, July 1 (Reuters) - The Dutch manufacturing industry contracted in June for the 12th straight month, research firm Markit Economics said on Wednesday, though the rate slowed and industrial output very nearly returned to a state of expansion.
Markit, which compiles the seasonally adjusted NEVI Purchasing Managers' Index (PMI), said rates of decline for new orders and production both eased, but sharp declines were still noted for both employment and inventories.
The PMI rose to 44.4 in June from 41.2 in May and 38.8 in April. June marks the 12th straight month the Dutch PMI has been below the 50 level that separates growth from contraction. It was, however, the weakest rate of contraction in the PMI since last October.
"While data for June and Q2 as a whole signal a much slower rate of overall decline than recorded earlier in the year, the PMI continues to indicate that operating conditions remain difficult overall," Markit said in a report.
Incoming new business fell for the 15th straight month, while output decreased for the ninth month running. There were also continued disinflationary pressures, as purchasing costs and prices for customers both fell yet again.
But Markit also said the output sub-index rose to 49.7, its highest reading since last September. Markit said where declines in output were found, it was linked to a decline in new orders. (Reporting by Ben Berkowitz; Editing by Andy Bruce)