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January PMI in Czech Republic signals marked manufacturing growth

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Staff Writer |
Czech Republic Manufacturing
Czech Republic   IHS Markit Czech Republic Manufacturing PMI

The latest PMI survey data from IHS Markit indicated a marked improvement in operating conditions across the Czech manufacturing sector.

Furthermore, January saw a robust increase in output that was the fastest since February 2011.[break]


Overall growth was supported by a steep increase in new orders and strong demand from foreign clients.

In line with marked production growth, business confidence reached the highest since January 2016.

Meanwhile on the price front, output price inflation accelerated to three-month high and input costs increased at a marked and accelerated rate.

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, the latest PMI reading signalled an improvement in business conditions in the Czech manufacturing sector that matched that seen in December.

Moreover, January data indicated the joint-strongest expansion in seven years and signalled a robust start to 2018.

Production levels among Czech manufacturers increased markedly in January.

Furthermore, the pace of expansion was the fastest since February 2011.

Anecdotal evidence linked the latest rise in output to greater demand from both domestic and foreign clients.

Czech Republic Manufacturing PMI In line with robust output growth, the latest upturn in new orders was steep and the second-strongest since May 2014, just behind December’s recent high.

Similarly, expansion in export orders eased but was steep overall.

Panellists stated that the rise was supported by stronger client demand across a range of sectors.

Greater new order levels were reflected in further job creation and backlog accumulation.

Although the respective rates of expansion softened from December, they were steep nonetheless.

A number of survey respondents suggested that labour shortages remained an issue, despite the survey having shown strong employment growth.

In line with a further deterioration in vendor performance, input price inflation accelerated in January.

Moreover, the pace of increase was marked overall and well above the historical series trend.

Panellists linked greater cost burdens to higher raw material costs and supplier shortages.

Meanwhile, output charge inflation was strong and accelerated to a three-month high.


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