INSTANT VIEW 1-Czech April PMI rises for 1st time from January

                                
 PRAGUE, May 2 (Reuters) - Growth in new orders and jobs
pushed the Czech Purchasing Managers' Index (PMI) higher in
April to 59.0, beating market expectations and March's 58.6, a
survey from Markit Economics showed on Monday.
                                
 The index, which has exceeded the 50.0 mark dividing growth
from contraction since November 2009, increased for the first
time since falling from a record 60.5 in January.
                                
 New order growth strengthened in April after slowing to its
weakest level in more than a year in March. The rate of
production growth in the Czech manufacturing sector remained
sharp in April.
                                
 Backlogs of work rose for the 19th month running, and at the
second-fastest rate in the survey's history.
                                
 Hungary's seasonally-adjusted Purchasing Managers' Index
<HUPMI=ECI>, compiled under a different methodology, rose to
56.9 in April, from a revised 53.9 in March. [ID:nBUD005801]
Poland is set to release its PMI on May 4.

****************************************************************
KEY POINTS:                       04/11      03/11     04/10
Purchasing Managers' Index        59.0       58.6       57.3
Output                            61.3       62.4       60.5

(For table, double click on......................[ID:nPRA005581]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
 
COMMENTARY:
                                
 MURAT ULGEN, HSBC CHIEF ECONOMIST, CENTRAL AND EASTERN
EUROPE AND SUB-SAHARAN AFRICA
                                
"Manufacturing conditions improved at a quicker pace for the
first time in three months in April in the Czech Republic, and
the PMI is only around 1.5 pts below the record high noted in
January this year."
                                
 "While output growth moderated slightly during the month,
all other components of the index rose, with particular strength
seen in the new orders component."
                                
 "A strong rise in new export orders index also indicates
that the global trade cycle continues to help the Czech
manufacturing sector."
                                
 "This suggests that the outlook for Q2 growth remains robust
after the strength seen in Q1 2011. The improvement in
manufacturing conditions as well as further increases in the
backlog for work index continue to translate into higher
employment in the manufacturing sector, with the employment
index rising for the third consecutive month."
                                
 Inflationary pressures persist with both input and output
prices remaining above long-term averages but the pace of
increase in input prices moderated during the month for the
first time in seven months."
                                
 
BACKGROUND:
- Report on last Czech c.bank rate decision......[ID:nPRA005508]
                                
              [ID:nHJJ000132] [ID:nLDE72N18C] [ID:nPRG004831]
- February foreign trade figures.................[ID:nLDE7341E9]
- February industrial output.....................[ID:nLDE7341E9]
- Fourth-quarter GDP data estimate...............[ID:nLDE70E08A]

LINKS: 
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- 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)