Skyline of Prague, Czech Republic

Czech Republic PMI June 2021

Czech Republic: Strongest improvement in operating conditions on record amid easing restrictions and soaring price pressures in June

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, came in at 62.7 in June, up from May’s 61.8 and marking a fresh all-time high thanks to a further lifting of containment measures. Therefore, the index moved further above the critical 50-threshold separating improvement from deterioration in operating conditions of the manufacturing sector.

June’s print largely reflected stronger expansions in new orders and production. Moreover, employment grew at a faster pace amid mounting pressures on capacity as supply chain disruptions intensified. Raw material shortages and record-breaking delivery delays in turn translated into a fresh record-high for input cost inflation, driving output charges up at the strongest pace on record as well. Lastly, business sentiment grew more upbeat amid hopes of an oncoming demand spree.

Commenting on the release, Sian Jones, economist at HIS Markit, stated:

“As inflationary pressures strengthen monetary policy is likely to shift accordingly. We currently forecast two interest rate hikes from the CNB in the second-half of 2021.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest