PRAGUE, March 1 (Reuters) - The Czech Purchasing Managers'
Index (PMI) dipped to 59.8 in February from January's all-time
high of 60.5.
A survey provided by Markit Economics showed on Tuesday the
decline in the headline figure reflected weaker growth of
output, new orders and stocks of purchases.
This was partly offset by a strong rise in employment and
extensions of suppliers' delivery times.
New export contracts placed with Czech manufacturers
expanded rapidly in February.
The rate of export growth accelerated for the fourth
successive month. The latest figure signalled the fastest
expansion since last June, and was the sixth-highest recorded to
date.
Firms reported improving demand from a number of
neighbouring European markets.
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KEY POINTS: 02/11 01/11 02/10
Purchasing Managers' Index 59.8 60.5 54.3
Output 63.4 64.3 58.4
(For table, double click on......................[]
- A figure above 50 indicates expansion on the previous month
while a number below 50 signals contraction.
COMMENTARY:
TOMAS VLK, ANALYST, PATRIA FINANCE
"There is a slight drop, which is not any big
disappointment. The index is still high. Basically it confirms
the current outlook for the Czech economy: Strong growth in
exports should continue, which will lead industrial production."
PAVEL SOBISEK, CHIEF ECONOMIST, UNICREDIT
"The result is in line with expectations, it is the second
highest number ever, so it is still very good.
"The industrial sector still has at least several solid
months ahead."
MURAT ULGEN, HSBC CHIEF ECONOMIST, CENTRAL & EASTERN EUROPE
and SUB-SAHARAN AFRICA
"Manufacturing conditions in the Czech Republic continued to
improve in February, albeit at a slower pace with the Czech PMI
easing slightly in February after touching a new record high in
January. The index, however, remains well above its long-term
average."
Most of the sub-components of the PMI index moderated during
the month, indicating ongoing expansion but at a slower pace.
One of the main exceptions was the employment component which
rose close to its historical high. The continued improvement in
employment conditions suggests that manufacturing firms remain
upbeat about future demand prospects."
Of the components that witnessed a slowdown during the
month, new orders saw the sharpest moderation but still remains
above its long-term average. International demand also continues
to provide support to Czech manufacturing with the new export
orders component rising further during the month."
While output prices eased marginally in February, the
continued build-up in commodity prices pushed input prices
higher still, in fact to its historical peak. As such, concerns
about commodity-led inflationary pressures over the coming
months are likely to persist."
BACKGROUND:
- Report on last Czech c.bank rate decision......[]
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- December foreign trade figures.................[]
- December industrial output.....................[]
- Fourth-quarter GDP data estimate...............[]
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)
