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Czech Republic September PMI signals strong manufacturing growth

Staff Writer | October 4, 2017
Czech manufacturing firms signalled a strong improvement in performance in September, according to the latest PMI survey data from IHS Markit.
Czech manufacturing
Czech Republic   IHS Markit Czech Republic Manufacturing PMI
The upturn was driven by strong expansions in output and new orders, with new export sales also increasing at a steep pace.

Sustained growth was reflected in accelerated backlog accumulation and further job creation.

On the price front, cost burdens rose sharply and output price inflation reached a four-month high.

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.

September’s PMI reading was 56.6, up from 54.9 in August.

The latest survey data signalled the strongest improvement in business conditions in the manufacturing sector since April.

Although the PMI average for the third quarter was the lowest of the year so far, it indicated a solid overall expansion nonetheless.

Production levels in the Czech manufacturing sector rose at a steep pace in September, with the rate of growth accelerating from August’s eightmonth low.

Panellists linked higher output to strong client demand.

New orders received by goods producers continued to increase in September, rising at the fastest pace since May.

The upturn was commonly attributed to larger order volumes from domestic and foreign clients, with new export growth reaching a fivemonth high.

In line with the strong expansion in new orders, backlog accumulation accelerated in September.

The level of outstanding business rose at a solid rate that was the fastest since June.

The pace of job creation meanwhile eased to the weakest since last October, however.

Although capacity constraints were cited, vacancies were sometimes left unfilled as firms struggled to find suitable candidates.