INSTANT VIEW 3-Czech PMI ticks up in Feb, still in contraction

                                
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 PRAGUE, March 2 (Reuters) - The Czech Purchasing Managers'
Index (PMI) rose to 32.6 in February, from 31.5 in January, the
first upward move since a year ago, but still indicative of
rapid contraction and below the critical 50.0 mark for the
eighth consecutive month, Markit Economics and ABN Amro said on
Monday.
                                
 The figure for output continued to fall at a sharp rate
overall in February for the eighty month. 
                                
 However, seasonally adjusted output rose for the second
month running from December's record low, indicating the weakest
rate of decline in three months, Markit said.
                                
 It said new orders remained well below the no-change mark of
50.0 in February, indicating a seventh successive month of
falling. For the third month running, over half of the survey
panel reported lower new orders, linked to the worsening climate
of demand both at home and in key export markets.

****************************************************************
KEY POINTS:
                                
                              FEB 09     JAN 09     FEB 08
Purchasing Managers' Index        32.6       31.5       56.5
Output                            30.2       29.5       59.6
(For full table, double click on................[nPRA002397]
 
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.

                                
 COMMENTARY:
                                
 MIROSLAV PROJHAR, ANALYST, JP MORGAN 
                                
 "Maybe the figures will be a little bit better for the
moment, after there were certain steps taken in western Europe,
like a car scrap subsidy, but I do not think that it will yet
solve the main problem, which is a boom in loans in the past
years. This bubble will have to be eliminated."
                                
 
                                
 AGATA URBANKSA, EMERGING EUROPE ANALYST, ING
                                
 "We have the same as what we've seen in Poland and Hungary.
There is a slight improvement but still well in contractionary
territory."
                                
 "It is slightly positive but it is hard to get excited, and
for the time being this is certainly overlooked this morning, at
least when everyone is focusing on the EU summit and currencies
are selling off."
                                
 
                                
 TIMOTHY ASH, HEAD OF RESEARCH (CEEMEA), RBS
 "The data continues to affirm that no economy is immune from
the impact of the global growth slow-down/credit crunch, albeit
the assumption still is that the Czech Republic will be better
positioned than some of its regional peers to ride through
this."
 
 BACKGROUND:
- Report on last Czech c.bank rate decision......[ID:nPRA002354]
                                
                  [ID:nPRG001229] [ID:nL54762] [ID:nL5536584]
- December foreign trade figures..................[ID:nL5137664]
                                
                                               [ID:nL5531824]
- December industrial output......................[ID:nLB300021]
                                
                               [ID:nPRA002366] [ID:nLB729502]
- Fourth-quarter GDP growth data................. [ID:nLD572665]
                                
                                               [ID:nLD474699]
 
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- 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; Editing by Michael Winfrey)