Czech Republic PMI December 2020

Czech Republic

Czech Republic: Manufacturing PMI improves at fastest pace in over two-and-a-half years in December

January 4, 2021

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, increased from 53.9 in November to 57.0 in December, marking the best reading since April 2018. Therefore, the index moved further above the critical 50-threshold separating deterioration from improvement in the health of the manufacturing sector.

December’s print largely reflected the strongest expansion in new orders since February 2018 and the fastest increases in production and employment in two-and-a-half years. On the price front, input cost inflation intensified further amid supply shortages and lengthening supplier lead times, driving output charges up for the first time in 2020. Lastly, business sentiment strengthened to the highest in over two years amid expectations of stronger global economic conditions ahead.

Commenting on the release, Sian Jones, economist at HIS Markit, stated:

“We currently forecast a contraction in industrial production of 7.9% in 2020, but an expansion of 7.1% in 2021 as demand conditions are anticipated to improve amid widespread vaccine roll-outs."

Commenting on the release, Sian Jones, economist at HIS Markit, stated:

“We currently forecast a contraction in industrial production of 7.9% in 2020, but an expansion of 7.1% in 2021 as demand conditions are anticipated to improve amid widespread vaccine roll-outs."

FocusEconomics Consensus Forecast participants see fixed investment growing 3.6% in 2021, which is down 0.7 percentage points from last month’s projection, and expanding 6.1% in 2022.


Author: Massimo Bassetti, Senior Economist

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