PRAGUE, Oct 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) rose to 58.0 in September from 57.3 in August,
holding above the breakeven point for the 11th month running and
the fastest improvement in business conditions since August
2007.
Four of the five PMI component indexes contributed to the
upward movement in September: employment, new orders, stocks of
purchases and suppliers' delivery times.
New orders rose for the 14th successive month. Firms
reported that both domestic and export markets had contributed
to the improving outlook.
Germany was mentioned as a key source of export growth
during the latest period.
Czech manufacturing employment rose for the seventh month
running in September, and at the fastest pace since August 2007.
Survey respondents widely reported the need to expand capacity
to meet current and expected work loads.
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KEY POINTS: 09/10 08/10 09/09
Purchasing Managers' Index 58.0 57.3 49.5
Output 59.8 61.1 53.6
(For table, double click on......................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
COMMENTARY:
KUBILAY OZTURK, ECONOMIST FOR EMERGING EUROPE AT HSBC
"The headline Czech Manufacturing PMI index maintained its
upward trend in September with output, new orders and employment
all having advanced over the month."
"The rate of expansion in production softened slightly, yet
the average monthly increase between July and September was
slightly above the average for the previous three-month period,
giving an upbeat indication for GDP growth in the third
quarter."
"More importantly, the undisrupted improvement in production
appears to have been supported by both domestic and external
markets this time. The strength in both markets has also been
reflected in a noticeable surge in manufacturing employment,
providing further support to household consumption that has
already surprised to the upside in the year to date."
"After a brief fall in August, output prices advanced on the
month, albeit only slightly, justifying the expectation of a
lack of meaningful inflationary pressures ahead and maintenance
of low-rate environment in the near-term.
PAVEL SOBISEK, CHIEF ECONOMIST, UNICREDIT, PRAGUE
"A true surprise, one of the highest numbers we have seen so
far. It means that the Czech industry does not have to fear a
slowdown in the nearest months and no doubt there is a link to
the German economy, German orders, which are still strong.
"It definitely means that the Czech economy should show
solid growth the next quarter."
BACKGROUND:
- Report on last Czech c.bank rate decision......[]
[] []
- July foreign trade figures.....................[]
- July industrial output.........................[]
- Second-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>
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(Reporting by Mirka Krufova and Jana Mlcochova)
