INSTANT VIEW 1-Czech Nov PMI signalled a solid rate of growth

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KEY POINTS: 
                                   NOV 07     OCT 07    NOV 06 
 Purchasing Managers' Index        54.9       54.6      55.6 
 Output                            56.6       57.2      58.0 
 New orders                        56.4       54.2      56.7 
 
 (Full table of data...............................[nPRA001636]) 
 
- A figure above 50 indicates expansion on the previous month 
while a number below 50 signals contraction. 
- The headline index has held above the neutral mark of 50.0 
since March 2003. 
- The latest PMI data signalled a solid rate of growth in the 
Czech manufacturing sector in November and a modest improvement 
since the previous month. Above the neutral level for the 
fifty-seventh successive month, at 54.9, the PMI signalled solid 
overall expansion of the sector. However, the latest reading was 
only slightly higher than October's one-year low. 
- Production eased for the fourth successive month in November 
from July's peak. 
- The new orders rose for the first time in four months in 
November, signalling a stronger increase in new work at Czech 
manufacturers than the previous month. 
- Input price inflation accelerated in November to its highest 
level since the start of the year. Firms reported higher energy, 
fuel, transport and raw material prices during the month, with 
crude oil cited as a key source of underlying inflationary 
pressure. 
- Workforce growth in the manufacturing sector was maintained 
for a twenty-ninth successive month in November, though the rate 
of job creation remained weak. 
- Data released by NTC Research and ABN Amro. 
 
COMMENTARY: 
    DEBBIE ORGILL, SENIOR ECONOMIST, ABN AMRO, LONDON 
    "After a lull of a couple of months it would appear that 
demand/sentiment recovered in November, with Czech manufacturing 
citing an improvement in demand from the German market. However, 
the employment component suggests that the domestic side of the 
economy is softening still. Price developments remain quite 
negative with import prices under pressure from higher energy 
costs." 
 
BACKGROUND: 
- Report on most recent interest rate decision...[ID:nL29206268] 
                                  [D:nPRA001631] [ID:nL29679528] 
- September foreign trade figures.................[ID:nL0261687] 
- September industrial output....................[ID:nL08278721] 
- Second-quarter GDP growth data.................[ID:nL07341365] 
                                                 [ID:nL07662770] 
 
LINKS: 
 
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- Czech forward money market rates                       
 
 (Reporting by Mirka Krufova) 
  
  Keywords: MANUFACTURING PMI/CZECH  
    

[PRAGUE/Reuters/Finance.cz]