Czech Republic: Manufacturing PMI inches down to a seven-month low in April
May 2, 2018
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit ticked down from 57.3 in March to 57.2 in April, a seven-month low. Nonetheless, the PMI remained firmly above the critical 50-point mark separating expansion from contraction in activity in the manufacturing sector.
April’s moderation reflected slower growth in output and softer job creation. Output growth eased to a six-month low, but remained historically strong, while the pace of job creation was the slowest since October 2016. Conversely, new orders continued to rise at a rapid clip in April, buttressed by higher demand from clients at home and abroad. Regarding prices, input inflation eased somewhat but remained elevated, largely reflecting higher costs for raw materials, particularly metals. Due to higher input costs, output prices continued to rise, albeit at the softest pace in four months. Firms stayed optimistic in April, reporting expectations of higher investment and new business.
Czech Republic Fixed Investment Forecast
FocusEconomics Consensus Forecast participants see fixed investment increasing 5.5% in 2018, which is up 0.1 percentage points from last month’s projection. For 2019, panelists expect fixed investment to expand 4.2%.
Author: Javier Colato, Economist