INSTANT VIEW 1-Czech Jan PMI books fastest growth in 5 months

                                
 PRAGUE, Feb 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) rose to 56.1 in January from December's 55.0, NTC
Research and ABN Amro said on Friday.
****************************************************************
KEY POINTS:
                                
                                JAN 08     DEC 07    JAN 07
 Purchasing Managers' Index        56.1       55.0      57.6
 Output                            57.8       57.0      60.1
 New orders                        58.4       56.7      58.5

 (Full table of data...............................[nPRA001734])

- 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 Czech manufacturing sector saw a strong improvement in
business conditions at the start of 2008, having experienced
relatively subdued growth in the final months of last year.
- Output continued to increase at a strong rate in January. The
index rose to 57.8, from 57.0 in December, booking the fastest
rate of expansion in five months. Average output volumes in the
sector have now risen for 64 consecutive months.
- New orders rose to 58.4 in January, from 56.7 in the previous
month, showing the fastest rate of growth in new orders to Czech
manufacturers since last August.
- The latest new orders figure is also above the average for
2007 of 57.8. Firms reported improved demand for their products
from both new and existing customers.
- Input price inflation accelerated sharply in January to an
18-month peak. The rise in the index from 63.3 to 67.2 was also
the biggest since January 2007.
- A wide range of inputs were quoted by panellists as being up
in price, including energy, transport, timber, oil-related
products such as plastics and foodstuffs.
- A recent increase in the lower rate of VAT was also reported
to have driven up costs.
- New export orders rose sharply from December's two-and-a-half
year low of 52.6 to 55.1, indicating a strong expansion.
- Firms reported improving demand from customers based abroad.
Though down on the average for last year (56.8), the index was
comfortably above its long-run level of 53.7.
- Jobs in the Czech manufacturing economy were created at the
fastest pace for five months in January. Rising to 52.7, the
index pointed to a moderate overall expansion in staffing levels
as production requirements rose.
- The data suggested a rate of employment growth that was below
the 2007 average.

COMMENTARY:
                                
 DEBBIE ORGILL, SENIOR ECONOMIST, ABN AMRO, LONDON
                                
 "The upturn in the Czech manufacturing sector is following
the trend seen in Germany according to the IFO survey. The
bounce in export orders is particularly welcome given the global
concerns over growth and the ongoing appreciation of the crown
exchange rate. However, the price dynamics are looking
especially negative at the start of the year, although a number
of one-off factors are at play here and the outlook should
improve during 2008."

BACKGROUND:
- Report on most recent interest rate decision...[ID:nL19397016]
                                
              [ID:nPRG000640] [ID:nPRA001675] [ID:nPRA001683]
- November foreign trade figures.................[ID:nL10302677]
- November industrial output.....................[ID:nL16407509]
- Third-quarter GDP growth data..................[ID:nL07435890]
                                
                                              [ID:nL07657597]

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 (Reporting by Mirka Krufova; editing by Tony Austin)