INSTANT VIEW 1-Czech Feb PMI growth hits record in Feb

    PRAGUE, March 1 (Reuters) - The Purchasing Manager's Index 
(PMI) edged up for the fourth consecutive month in February to 
58.5., a record high since the data were first collected in July 
2001. 
 
KEY POINTS: 
                                  FEB 07     JAN 07     FEB 06 
 Purchasing Managers' Index        58.5       57.6       55.1 
 Output                            60.3       60.1       56.8 
 New orders                        59.2       58.5       58.3 
 
 (Full table of data...............................[nPRA001170]) 
 
- 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 survey said five sub-indices registered new highs, as new 
export orders, employment and output prices all rose at 
series-record rates. 
- Production levels increased at the fastest rate for nearly 
two-and-a-half years in February, boosted primarily by stronger 
gains in new orders. Average output volumes have now risen for 
fifty-three consecutive months. 
- The rate of expansion in new work has accelerated continuously 
since last November, and the latest growth was the strongest 
indicated by the survey for six months. Firms reported 
successful marketing campaigns and also commented on strong 
export demand. 
- The rate of input cost inflation eases in February from 
January's five-month high, but still remained substantial. 
Metals, petrochemicals, wood and energy all specifically 
mentioned by firms as being up in price on the month. 
- The employment index shows its steepest rate of growth in the 
survey history. Average staffing levels in the manufacturing 
sector have now increased for twenty consecutive months. Almost 
30 percent of respondents reported expanding their workforces 
during the month, citing strong increases in current and 
expected workloads. 
- Data released by NTC Research and ABN Amro. 
 
COMMENTARY: 
    ZSOLT PAPP, ECONOMIST, ABN AMRO, LONDON 
    "The PMI reached a new survey high in February, underpinning 
very strong momentum in Czech manufacturing. This signals to us 
that the slowdown in manufacturing output in November-December 
was mainly seasonal and not trend and, moreover, export growth 
looks likely to remain high." 
 
BACKGROUND: 
- Report on most recent interest rate decision...[ID:nPRA001122] 
                                 [ID:nL02157584] [ID:nL25513531] 
- Dec foreign trade figures......................[ID:nL05800500] 
- Dec industrial output..........................[ID:nL14213337] 
- Third-quarter GDP growth data..................[ID:nL08309748] 
 
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