INSTANT VIEW 1-Czech Jan PMI growth fastest since Aug

    The Purchasing Manager's Index 
(PMI) edged up for the third straight month in January to 57.6. 
    The growth was the second-highest monthly reading since data 
were first collected in July 2001 and signalled the strongest 
overall growth of the sector since August 2004 (57.7), the PMI 
survey showed on Thursday. 
 
KEY POINTS: 
                                  JAN 07     DEC 06     JAN 06 
 Purchasing Managers' Index        57.6       56.2       54.6 
 Output                            60.1       58.9       58.1 
 New orders                        58.5       57.2       56.6 
 
 (Full table of data...............................[nPRA001131]) 
 
- 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 increased at the fastest rate since September 2004 in 
January, attributed by firms to sustained strength in new order 
growth.  
- The seasonally adjusted index rose to 60.1 from 58.9 in 
December, signalling a steep increase in production. Output has 
risen for 52 consecutive months, and the rate of growth has now 
accelerated for the past three months. 
- New orders accelerated for the third successive month in 
January. The seasonally adjusted index rose to 58.5 from 57.6 in 
December, recording the sharpest increase in new business since 
August 2006.  
- There were reports from survey respondents that a mild winter 
had encouraged higher client activity. 
- The input prices index jumped from 58.9 to 63.7, indicating 
the fastest increase in average input prices since last August. 
- A sharp uptick in input cost inflation was indicated by the 
latest survey data, following two months of weakening inflation. 
- Rising metals and energy costs were mentioned by several 
participants.  
- Manufacturing employment increased at the fastest rate 
indicated by the survey to date in January.  
- Data released by NTC Research and ABN Amro. 
 
COMMENTARY: 
    ZSOLT PAPP, ECONOMIST, ABN AMRO, LONDON 
    "January PMI shows strong growth in the manufacturing 
sector, we particularly note the healthy performance in output 
and new orders and employment, which bodes well for the 
near-term outlook.  
    "On a less positive note, we also notice the pick-up in 
inflation pressure, which could feed into CPI at a later stage, 
if it continues at this pace." 
 
BACKGROUND: 
- Report on most recent interest rate decision...[ID:nPRA001122] 
                                                 [ID:nL25513531] 
- Nov foreign trade figures......................[ID:nL09931969] 
                                                 [ID:nL09833629] 
- Nov industrial output..........................[ID:nL15933976] 
- Third-quarter GDP growth data..................[ID:nL08309748] 
 
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[PRAGUE/Reuters/Finance.cz]