INSTANT VIEW 1-Czech November PMI picks up from 9-month low

    PRAGUE, Dec 1 (Reuters) - The Purchasing Manager's Index 
(PMI) for the Czech manufacturing sector picked up in November 
after two months of declines, as expansion in output, new orders 
and employment accelerated. 
 
KEY POINTS: 
                                  NOV 06     OCT 06     NOV 05 
 Purchasing Managers' Index        55.6       54.6       54.7 
 Output                            58.0       55.3       57.5 
 New orders                        56.7       56.3       57.2 
 
 (Full table of data...............................[nPRA001061]) 
 
- 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. 
- Output rose to 58.0 in November from 55.3 in October, the 
sharpest rate of expansion for three months. Higher production 
was linked by firms to sustained strong growth in new work, and 
also to stockbuilding programmes. 
- New orders continued to rise sharply in November, to 56.7 from 
October's 15-month low of 56.3. Firms reported gaining new 
contracts at home and abroad, and the successful marketing of 
new products. 
- Input prices eased to 61.0 from October's 62.1 to stay at a 
level indicative of a rapid rate of input cost inflation. 
However, the overall rate of inflation remained weaker than the 
recent highs seen over the summer. 
- Manufacturing employment grew for the 17th successive month in 
November. The employment index rose to a six-month high of 53.8. 
- Data released by NTC and ABN Amro. 
 
COMMENTARY: 
    ZSOLT PAPP, ECONOMIST, ABN AMRO, LONDON 
    "The rebound in the November PMI suggests that the October 
slowdown was a blip instead of trend, which lends support to our 
opinion that economic momentum is likely to remain healthy. 
    "Output price inflation eased visibly in November, 
signalling the possibility of solid growth with subdued 
inflation." 
 
BACKGROUND: 
- Report on most recent interest rate decision...[ID:nPRA001058] 
                                   [ID:nPRA001059][ID:nL3091748] 
- Sept foreign trade figures.....................[ID:nL03897588] 
- Sept industrial output.........................[ID:nL08849213] 
- Second-quarter GDP growth data.................[ID:nL08422633] 
                                                  [ID:nL0863924] 
 
LINKS: 
 
- For LIVE Czech economic data releases, click on       <ECONCZ> 
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                <CZKVIEW> 
- Czech money guide                                      <CZK/1> 
- Czech benchmark state bond prices                   <0#CZBMK=> 
- Czech forward money market rates                      <CZKFRA> 
 
 ((Reporting by Mirka Krufova; Editing by Chris Pizzey; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: MANUFACTURING PMI/CZECH