Czech Republic: Manufacturing PMI inches up in March
April 1, 2015
In March, the manufacturing Purchasing Managers’ Index (PMI), elaborated by HSBC in collaboration with Markit, increased slightly from February’s 55.6 to 56.1. As a result, the manufacturing PMI moved a bit further above the 50-threshold, where it has been since May 2013.
March’s slight improvement mainly reflects that new orders and, to a lesser extent, employment, purchasing activity and stocks of purchases all grew at a slightly faster pace than in the previous month. Conversely, output growth slowed slightly, resulting in a faster increase in backlogs. Input prices registered their first increase in three months, however output prices remained broadly unchanged over the previous month.
HSBC/Markit commented that, “[t]he Czech manufacturing sector has seen strong growth throughout the first three months of the year […]. This boost […] lends support to the CNB’s view that economic growth will accelerate gradually following a slowdown in late-2014. PMI output data for February and March suggest that the 5.5% official year-on-year growth rate of industrial output seen in January (adjusted for calendar effects) will be broadly maintained. Moreover, a wider European recovery in 2015, hinted at recently by the strong March reading from the Flash Eurozone PMI, should provide further support to Czech manufacturing growth. Meanwhile, both PMI price indicators continue to signal a lack of inflationary pressures.”