Czech Republic: Manufacturing PMI inches up in November; points to expansionary conditions
December 1, 2015
In November, the manufacturing Purchasing Managers’ Index (PMI), elaborated by Markit, rose slightly from October’s 10-month low of 54.0 to 54.2. The reading represents a first increase following three consecutive moderations after the PMI had peaked at an over-four-year high in July. As a result, the manufacturing PMI remained above the 50-long-term average that indicates expansion in the manufacturing sector, where it has been since May 2013.
November’s modest improvement mainly reflects that output and employment grew at a faster pace. However, on a negative note, new orders growth decelerated for a fourth consecutive month, dropping to the lowest level in over two years, and export orders only grew at a modest pace. Inflationary pressures were moderate in November: input prices fell for a third straight month and output charges increased only marginally.
Markit commented that, “the PMI arrested its recent slide in November, with the first month-on-month rise since July. That said, manufacturing expansion over the fourth quarter as a whole still looks set to be the weakest since Q3 2013, as the moderation in new order growth continued. The latest increase in new work was the weakest registered since June 2013, the first month of the current growth sequence.”