December PMI signals strongest manufacturing growth in Czech Republic since February 2011Staff Writer | January 3, 2018
December survey data indicated a marked improvement in operating conditions in the Czech manufacturing sector that was the greatest seen since February 2011.
Czech Republic IHS Markit Czech Republic Manufacturing PMI
Greater foreign client demand was also reflected in a steep and accelerated rise in export sales.
In line with higher order volumes, capacity requirements increased with backlog accumulation accelerating.
Meanwhile, inflationary pressures softened for the second month running.
Overall business confidence rose and reached an eight-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.
At 59.8, up from 58.7 in November, the latest PMI reading signalled the most robust growth in the Czech manufacturing sector in over six-and-a-half years.
This signalled a strong end to the fourth quarter of 2017.
Output levels continued to grow at a marked pace in December, with the latest expansion the Czech Republic Manufacturing PMI fastest since April 2011.
Anecdotal evidence linked the rise to stronger domestic and foreign client demand.
In line with the acquisition of clients, new business received by manufacturers expanded steeply in December.
Moreover, the rate of growth quickened to the fastest in almost seven years.
Panellists also linked the latest increase to stronger foreign client demand, with new orders from abroad rising at a steep and accelerated rate.
Greater new order volumes also led to a rise in the level of outstanding business.
Backlogs accumulated at the fastest pace since January 2011, as firms struggled to adapt to increased production requirements.
That said, job creation accelerated in December and was steep overall as firms made efforts to expand capacity. ■