November Czech Republic PMI highest since April 2011
Supported by a robust upturn in new orders, goods producers indicated a stronger overall performance and raised production levels at the fastest pace in three-and-ahalf years.
Meanwhile, capacity pressures continued to mount with backlogs increasing at the strongest rate in over six-and-a-half years, despite marked job creation.
Meanwhile, inflationary pressures eased slightly but remained sharp overall.
The headline IHS Markit Czech Republic Manufacturing PMI is a composite single-figure measure of manufacturing performance.
It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
Any figure greater than 50.0 indicates overall improvement in the sector.
At 58.7, up from 58.5 in October, the latest index reading signalled a steep improvement in operating conditions in the Czech manufacturing sector.
Moreover, goods producers indicated the best performance in six-and-a-half years, continuing the sharp growth seen so far in the final quarter of 2017.
Output levels increased further in November, with the pace of expansion accelerating to a sharp rate that was the fastest since April 2014.
Anecdotal evidence suggested the upturn in production was due to stronger client demand and greater order volumes.
In line with higher domestic and foreign demand, new orders received by Czech manufacturers grew steeply in November.
Despite the rate of expansion softening from October, the latest upturn was well above the long-run series average.
Similarly, new export sales rose strongly as firms acquired clients from new markets.
Meanwhile, the level of outstanding business held by firms grew at the quickest rate since January 2011.
Panellists linked increases in backlogs to stronger client demand.
Capacity pressures remained widespread despite workforce numbers rising at a steep pace.
A number of panel members noted that long-standing vacancies were beginning to be filled following recent struggles to find suitable candidates.
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