PRAGUE, Dec 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) was little changed in November, creeping up to 57.3
from October's 57.2, well above its long-run average of 52.5.
Markit Economics data showed on Wednesday the growth was
mainly thanks to a marked increase in new orders.
Growth in both output and new orders remained strong,
despite easing to nine-month lows, while jobs continued to be
added at a sharp pace. Inflationary pressure on input costs
remained marked, reflecting supply shortages.
Production at Czech manufacturers also continued to rise
strongly, extending the current sequence of continuous growth to
sixteen months.
But the output index eased further from August's three-year
peak, indicating a weakening rate of expansion. Although above
the long-run survey average, the latest pace of growth was the
slowest since February.
The new orders index remained well above the no-change mark
of 50.0 in November, signalling a further rise in new business
placed with Czech manufacturers.
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KEY POINTS: 11/10 10/10 11/09
Purchasing Managers' Index 57.3 57.2 50.6
Output 58.4 58.8 53.2
(For table, double click on......................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
MARKET REACTION:
The Czech crown <EURCZK=> was little changed at 24.95 to the
euro.
COMMENTARY:
PAVEL SOBISEK, CHIEF ECONOMIST, UNICREDIT, PRAGUE
"We are close to the record numbers (seen over the past half
a year). Czech industry continues to expand at a solid pace.
Since this is a leading indicator and is driven by new orders,
it is possible to expect that industry will stay in solid shape
also at the beginning of next year."
"This number is no surprise, it was indicated by the
previous leading indicator released by the statistics office."
"It is consistent with the development in Germany and the
big countries of the euro zone."
MURAT ULGEN, HSBC CHIEF ECONOMIST, CENTRAL & EASTERN EUROPE
and SUB-SAHARAN AFRICA
"Manufacturing conditions in the Czech Republic improved for
the thirteenth consecutive month in November, suggesting limited
impact of the crisis in the euro zone periphery so far."
"This could partly be attributed to continued strength in
the main trading partners for the Czech Republic, including
Germany, that was reflected in a further rise in the new export
index."
"Expanding activity was also reflected in rising stocks of
purchases and longer suppliers' delivery times. While the
headline index remained above its historical average, there were
some further signs of deceleration, with both the output and new
orders components growing at a slower pace."
"Manufacturers also continued to add to their labour force
in response to rising demand for output at a pace comparable to
that seen prior to the financial crisis in Q4 2007. Both input
and output prices continued to rise, suggesting further build-up
in pricing pressures going forward."
BACKGROUND:
- Report on last Czech c.bank rate decision......[]
[] [] []
- September foreign trade figures................[]
- September industrial output....................[]
- Third-quarter preliminary 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>
** Index copyright and database rights owned by Markit:
unlicensed copying strictly prohibited **
Detailed PMI data are only available under licence from
Markit and customers need to apply to Markit for a licence. For
further information please phone Markit on ++ 44 20 7260 2454.
(Reporting by Mirka Krufova and Jason Hovet)
