Czech PMI rises in Feb as manufacturing sector posts strongest growth in nearly three years.

By bne IntelliNews March 3, 2014

The purchasing managers index (PMI) for the Czech manufacturing industry continued to increase in February 2014 indicating the strongest overall improvement in operating conditions since April 2011, a survey compiled by financial information company Markit Economics for HSBC showed.

The index, which monitors output, new orders, employment, stock levels and prices in the goods-producing sector, rose to 56.5 points in the second month of the year from 55.9 points January and stayed above the 50-point mark that signals expansion of the sector for the tenth straight month. 

New orders grew for the ninth month in a row in February and at the fastest pace in three years thanks to a strong foreign demand. New business from abroad grew at the strongest pace since June 2010 and at the second-fastest in the survey’s history, Markit said.

Improving new business inflows helped output in the sector increase for the 11th straight month in February with the rate of expansion hitting a 34-month high. The growth was supported by a rise in employment albeit the pace of expansion eased to a five-month low. Despite the rise in output, backlogs of work also increased at the second-fastest rate since September 2011. Manufacturers also expanded their purchasing activity and stocks of new inputs.

Price pressures remained strong in February reflecting the weaker koruna. Input prices grew for the sixth month running in February, while output prices decreased for the first time in five months.

Related Articles

Multilateral lender IIB to place its inaugural transaction in Czech koruna

Moscow-based development bank International Investment Bank (IIB) has priced its denominated private placement transaction with three-year floating rate notes in koruna of CZK501mn, the bank said in ... more

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more