Czech Republic: Manufacturing PMI improves at fastest pace in over two years in November
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, increased from 51.9 in October to 53.9 in November, marking the best reading since August 2018. Therefore, the index moved further above the critical 50-threshold separating deterioration from improvement in the health of the manufacturing sector.
November’s print largely reflected the strongest expansion in new orders since July 2018, likely sustained by robust domestic and foreign demand. However, output growth cooled in the month and job creation was only marginal, due to uncertainty stemming from the reintroduction of Covid-19 related containment measures throughout Europe. On the price front, input cost inflation intensified amid supply shortages and lengthening supplier lead times, while output charges remained unchanged in a bid to stimulate client demand. Lastly, business sentiment strengthened to the highest in over two years amid of a return to pre-pandemic output levels.
Commenting on the release, Sian Jones, economist at HIS Markit, stated:
“November PMI data painted a more encouraging picture as to the health of the Czech manufacturing sector. Despite challenges being faced by firms as COVID-19 restrictions and employee sickness hampered output growth itself, stronger demand conditions supported the solid overall gain.”
Commenting on the release, Sian Jones, economist at HIS Markit, stated:
“November PMI data painted a more encouraging picture as to the health of the Czech manufacturing sector. Despite challenges being faced by firms as COVID-19 restrictions and employee sickness hampered output growth itself, stronger demand conditions supported the solid overall gain.”