Czech Republic: Manufacturing PMI signals strong expansion in August
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) dipped to 61.0 in August from July’s 62.0. As such, the index remained entrenched above the 50-threshold, signaling a continued improvement in business conditions from the previous month.
August’s reading chiefly reflected a somewhat softer expansion in output compared to the previous month, due to capacity and material shortages. That said, growth in new business orders accelerated amid sustained demand dynamics. On the price front, input cost inflation moderated somewhat but remained elevated as protracted supply-chain disruptions continued to push prices upwards, while output charges rose at a joint record-high pace as firms passed on cost burdens to clients. Lastly, confidence among Czech manufacturing firms rose to the highest level since June 2018.