Czech Republic: Manufacturing PMI rises in December
January 3, 2022
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) rose to 59.1 in December from November's 57.1. Therefore, the index moved further above the 50-threshold, signaling a stronger improvement in business conditions from the previous month.
December’s reading chiefly reflected faster increases in output and new orders, despite persisting supply chain disruptions. Moreover, companies hired additional staff and purchasing activity also increased. On the price front, both input and output cost inflation softened but remained elevated, fueled by higher costs for energy, materials and transportation. Lastly, sentiment regarding the outlook improved amid strong demand projections and easing concerns over Covid-19-related disruptions.
Commenting on the release, Siân Jones, senior economist at IHS Markit, stated:
“Czech manufacturing firms continued to signal gathering growth momentum as 2021 comes to a close […]. Nonetheless, pressure on capacity remained stark and backlogs of work grew steeply.”