Czech Republic: Manufacturing PMI loses ground in June
July 1, 2016
In June, the manufacturing Purchasing Managers’ Index (PMI), elaborated by Markit, fell from May’s 53.3 to 51.8. Although the index has sustained five consecutive contractions, it remains above the 50-long-term average that indicates expansion in the manufacturing sector, where it has been since May 2013.
The index was weighed on by a deceleration new orders, output and job growth. The slowdown in manufacturing activity makes June’s expansion the lowest in three years. Weak external demand was a contributor to the slowdown in output. Backlogs of work grew at only at a marginal rate, and manufacturing expanded at the lowest rate since February 2014.
Markit commented that, “the Czech PMI continued its descent in June, signaling a further weakening in overall manufacturing growth. The headline figure was its lowest in three years and also below the long-run survey average (52.9). Survey indicators for output, new orders, exports, jobs and purchasing all showed weaker rates of expansion. The output index is consistent with a stagnation in the official year-on-year measure of industrial production.”
Author: Robert Hill, Economist