INSTANT VIEW 1-Czech September PMI ticks down

    PRAGUE, Oct 2 (Reuters) - The Purchasing Manager's Index 
(PMI) for the Czech manufacturing sector edged down in September 
but remained positive, driven by strong growth of new orders and 
output. 
 
KEY POINTS: 
                                  SEPT 06    AUG 06     SEPT 05 
 Purchasing Managers' Index        55.4       56.9       54.8 
 Output                            57.0       59.4       57.7 
 New orders                        57.4       59.9       58.1 
 
 (Full table of data...............................[nPRA000951]) 
 
- 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 continued strong growth in September. The seasonally 
adjusted output index decreased to 57.0 in September from 59.3 
in August. This signalled strong growth of Czech manufacturing 
output, by moving closer to the 50.0 no change level the index 
signalled an easing in the rate of growth to a level weaker than 
the average for 2006 so far. Most firms linked higher output to 
increased levels of new business. 
- Growth of new orders moderated since August but remained 
sharp. A number of firms reported expanded client bases helped 
in part by recent exhibitions. The latest survey showed a 48th 
successive monthly increase in new work although, at 57.4, the 
seasonally adjusted index signalled the weakest expansion since 
April.  
- In input prices there was further evidence from the survey of 
an easing of inflationary pressure in September. Although, at 
59.0, the seasonally adjusted index pointed to marked input cost 
inflation in September, it has fallen by over 10 index points in 
the last two months, unprecedented in the survey's history. 
Those firms whose input costs rose over the month cited higher 
metal, wood and oil-based commodity prices.  
- Manufacturing employment growth was maintained for a fifteenth 
successive month in September. 
- Data released by NTC Research and ABN Amro. 
 
COMMENTARY: 
    ZSOLT PAPP, ECONOMIST, ABN AMRO, LONDON 
    "Although softer than in previous months, September PMI 
figures signalled continued robust growth in the manufacturing 
sector. Against this background, output price inflation picked 
up, lending support the case for on-going vigilance by the Czech 
National Bank in our opinion." 
 
BACKGROUND: 
- Report on most recent interest rate decision...[ID:nL27342627] 
                                                 [ID:nL27365976] 
- July foreign trade figures.....................[ID:nL04435917] 
- July industrial output.........................[ID:nL08131869] 
- 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> 
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
  Keywords: ECONOMY CZECH PMI