PRAGUE, Feb 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) rose to a record high of 60.5 in January from
December's 58.4, beating the previous record of 59.5 set in July
2007 on the back of the fastest growth of new orders in the
survey's history.
Both domestic and new export orders increased markedly, with
companies seeing the neighbouring German market as a key source
of demand.
The output index rose for the second month running, to reach
the highest level since the series started in July 2001. The
latest growth extended the current sequence to 18 months.
Production growth was heavily attributed to improving market
conditions, both domestically and in export markets.
The new orders index posted its largest one-month gain since
April 2009, to reach a record high. Anecdotal evidence
highlighted strong demand for machinery and autos.
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KEY POINTS: 01/11 12/10 01/10
Purchasing Managers' Index 60.5 58.4 53.1
Output 64.3 60.5 56.2
(For table, double click on......................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
COMMENTARY:
VOJTECH BENDA, SENIOR ANALYST, ING COMMERCIAL BANKING
"It is another signal that industry is getting along, that
the economy is still in a period of relatively strong growth,
and that this growth is not slowing in the first quarter. We can
expect relatively strong GDP figures this year."
MURAT ULGEN, HSBC CHIEF ECONOMIST, CENTRAL & EASTERN EUROPE
and SUB-SAHARAN AFRICA
"Czech manufacturing PMI rose to a record high of 60.5 in
January, suggesting that the improvement in manufacturing
conditions seen in the last quarter of 2010 has continued at an
accelerating pace into early 2011."
"The improvement in manufacturing output is being driven by
strengthening domestic demand, reflected in the sharp rise in
the new orders component to all-time highs versus a smaller
increase in new export orders."
"The rapid expansion in new orders also led to an increase
in the backlogs of work as well as further lengthening in
suppliers' delivery times, both also arguing for strength in
demand, although the latter also indicates supply shortages."
"The re-acceleration in world trade activity also continues
to positively impact the domestic manufacturing sector with a
rise in the new export orders component."
"Manufacturers added to their labour force again in January
but at a slower pace than before. Inflationary pressures are
beginning to build up as well, with the commodity-driven rise in
input prices being increasingly passed on to consumers."
"Output prices rose sharply during the month to highs last
seen in mid-2008 and levels well above the historical average."
BACKGROUND:
- Report on last Czech c.bank rate decision......[]
[]
- November foreign trade figures.................[]
- November industrial output.....................[]
- Third-quarter GDP data.........................[]
LINKS:
- For LIVE Czech economic data releases, click on <ECONCZ>
- Instant Views on other Czech data []
- Overview of Czech macroeconomic indicators []
- Key data releases in central Europe []
- 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>
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(Reporting by Mirka Krufova and Jan Lopatka)
