Czech Republic: Manufacturing PMI rises in June
July 2, 2018
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit rose from a nine-month low of 56.5 in May to 56.8 in June. Therefore, the PMI moved further above the critical 50-point mark separating expansion from contraction in activity in the manufacturing sector.
June’s improvement reflected faster growth in output, new business orders and job creation. Both production and new orders growth accelerated from May’s nine-month lows and was robust by historical standards. Similarly, job creation grew at a quicker pace than in May and translated into a softer growth in backlogs of work. On the price front, input inflation accelerated, largely reflecting higher prices for steel, aluminium, copper and plastics. Consequently, output inflation also speeded up. Lastly, optimism among firms was robust in June, fueled by investment in new technology and a strong upturn in new orders.
Author: Javier Colato, Economist