PRAGUE, Sept 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) rose to 57.3 in August from 56.8 in July, holding
above the breakeven point for the tenth month running.
The pace of expansion in August was the second-weakest of
the past six months, but still well above the long-term average,
research firm Markit said.
Growth of output and new orders picked up, and firms added
to their workforces for the sixth successive month. The output
index rose to its sixth-highest level on record, and indicated
the fastest rate of expansion for three years.
New export orders accelerated despite the ongoing strength
of the crown, Markit said. Firms reported improving demand from
both domestic and export markets.
****************************************************************
KEY POINTS: 08/10 07/10 08/09
Purchasing Managers' Index 57.3 56.8 47.0
Output 61.1 59.8 51.5
(For table, double click on......................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
COMMENTARY:
PAVEL SOBISEK, CHIEF ECONOMIST, UNICREDIT, PRAGUE
"It is great news, consistent with the development in
Germany. It is clear that the Czech economy and Czech industry
in particular are kind of a satellite of German demand and on
the basis of this number we can assume that the third quarter,
and maybe even the fourth quarter, of this year will be decent."
"There is no reason (for reaction on the market), maybe
there should be a small reaction for the crown."
DAVID MAREK, CHIEF ECONOMIST, PATRIA FINANCE
"It is good data, with slight concerns for the future. PMI
has improved, which corresponds with data from Germany
recently."
"I think this comes with optimism from Czech firms. I am
slightly worried about development in the coming months; also
Europe may experience a slowdown similar to the United States."
"Europe cannot hold growth alone, because demand in EU
countries including the Czech Republic remains relatively weak."
JAN VEJMELEK, HEAD OF ECONOMIC AND STRATEGY RESEARCH,
KOMERCNI BANKA
"Today's figures are rather supportive. It shows the
situation in Czech industry is still good. I'm not very
surprised because we saw supportive figures from Germany in the
last month."
"Also output is higher than a month ago. It shows figures
for the third quarter will be good again."
"For the rest of the year, industry should keep its
momentum. It is still driven mainly by strong external demand,
from Germany and other western countries."
KUBILAY OZTURK, ECONOMIST FOR EMERGING EUROPE AT HSBC
"The headline Czech Manufacturing PMI index resumed its
upward trend in August and remained in expansionary territory."
"Output, new orders, export orders and employment all
advanced on the month, thanks mainly to externally driven
improvement in demand."
"Output prices fell for the first time since April, as
manufacturers apparently absorbed some of the impact of a
stronger CZK since early July. That provides further evidence of
a lack of meaningful inflationary pressures ahead despite the
strong rebound."
"All in all, the Czech recovery continues to mimic a
better-than-expected revival in Western Europe, and the August
PMI suggests the economy will maintain its sound footing in the
third quarter."
"The Czech economy will probably be affected by an expected
slowdown in the Eurozone's rebound in Q4 2010 and next year. But
the favourable divergence of the German economy, to which the
Czech production cycle is most closely linked, will likely
provide some comfort."
BACKGROUND:
- Report on last Czech c.bank rate decision......[]
[] [] []
- June foreign trade figures.....................[]
- June 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>
** 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 Jana Mlcochova)
