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PRAGUE, Jan 2 (Reuters) - The Czech Purchasing Managers'
Index (PMI) dropped to 32.7 in December, from 37.8 in November,
falling below the critical 50.0 mark for the sixth consecutive
month, Markit Economics and ABN Amro said on Friday.
The figure for output also contracted sharply to 27.4, a new
historic low and a faster contraction than in any other period
since the survey began in July, 2001.
Markit said the overall decline in business conditions was
the worst in the survey's history, and anecdotal evidence linked
it to worsening domestic and export demand.
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KEY POINTS:
DEC 08 NOV 08 DEC 07
Purchasing Managers' Index 32.7 37.8 55.0
Output 27.4 36.7 57.0
(For full table, double click on................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
COMMENTARY:
DAVID MAREK, CHIEF ECONOMIST, PATRIA FINANCE
"The figures fell very sharply. December was the first month
that we saw awful economic figures for trade, industry, the
labour market and others. Expectations are worsening further and
it's the beginning of a downward spiral."
"So I would say in the months to come, there will be a
worsening in the PMI figures."
"We are a small, open economy... so if manufacturing is
falling and industrial and export orders are falling by 10-20
percent, the mood in our industry must fall off a cliff."
"Our forecast for GDP growth this year is just 0.5
percent... just positive stagnation"
MIROSLAV PLOJHAR, ANALYST, JP MORGAN
"It's clearly heading in the same direction of the hard data
from the statistical office, and that is showing that the Czech
Republic is likely to experience, in the best case, a not to
deep recession, but a recession this year... a contraction in
economic growth."
"A fall in output means unit labour costs are rising. This
is not a good environment for another period of several years of
lasting growth, so more correction is in the pipeline, meaning
more contraction in employment and production."
BACKGROUND:
- Report on last Czech c.bank rate decision.......[]
[] [] []
- October foreign trade figures...................[]
- October industrial output.......................[]
- Third-quarter GDP growth 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 **
With immediate effect 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 ++
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(Reporting by Mirka Krufova; editing by David Stamp)
