PRAGUE, April 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) dipped for the second month in a row in March to
58.6 in from February's 59.8 and a record high in January,
reflecting weaker contributions from the two main components,
new orders and output.
A survey provided by Markit Economics showed on Friday this
was partly offset by a strong rise in employment, which grew at
the fastest pace in the survey history in March.
New orders increased at the slowest pace in more than a
year, suggesting that production growth will moderate further in
the second quarter.
Growth of total new work was the weakest since February
2010, while the increase in new export orders was the slowest
since last November.
The latest intake of new business, though slower than in
recent months, was sufficiently strong to generate a further
rise in backlogs of work.
The volume outstanding business in the sector has risen
continuously since October 2009.
To address this, manufacturers expanded their workforces at
the fastest rate in the survey history in March.
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KEY POINTS: 03/11 02/11 03/10
Purchasing Managers' Index 58.6 59.8 56.8
Output 62.4 63.4 60.2
(For table, double click on......................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
COMMENTARY:
DAVID OXLEY, ECONOMIST, CAPITAL ECONOMICS
"The data is a bit of a mixed bag. The Czech data has come
off a little bit, while Poland has increased."
"The bigger picture is they all remain very high above the
50 mark. There's nothing changing our view of near term strength
in the industrial sector."
"On the whole, the industrial sector is recovering quite
strongly but there has been little of that filtering through
into the consumer sector in most of the region."
MURAT ULGEN, HSBC CHIEF ECONOMIST, CENTRAL AND EASTERN
EUROPE AND SUB-SAHARAN AFRICA
"The pace of improvement in manufacturing conditions in the
Czech Republic continued to ease for a second consecutive month
in March.
"However, the manufacturing PMI touched a new record high in
January and despite the recent moderation, still remains well
above historical averages, suggesting that growth in Q1 2011
remained robust. Almost all components stayed above their
long-term averages but both new orders and output components saw
moderation as did the stocks of purchases.
"Employment was the only component that continued to expand
at a faster pace partly reflecting the need of manufacturers to
deal with a rising backlog of work, but also suggesting that the
outlook for the coming months remains fairly upbeat.
"The new export orders component also moderated during the
month, partly reflecting some easing of demand in the major
export destinations such as Germany during the month.
"A rising input prices index continues to reflect higher
commodity-led cost pressures, and is also now beginning to feed
through into higher final manufactured goods prices as well."
BACKGROUND:
- Report on last Czech c.bank rate decision......[]
[] [] []
- January foreign trade figures..................[]
- January industrial output......................[]
- Fourth-quarter GDP data estimate...............[]
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)
