PMI Drops To Lowest Level Since 2013William Malcolm
The Czech IHS Manufacturing Purchasing Managers Index (PMI) dropped to 48.6 in February from 49.0 in January, the lowest since January 2013, signalling a faster deterioration in the health of the Czech manufacturing sector, according to a report from IHS Markit published on March 1.
“Czech manufacturers continued to register a difficult start to 2019, with operating conditions deteriorating at the fastest pace in over six years in February. Further falls in production and new business reflected reports of weaker domestic and foreign client demand,” Economist at IHS Markit Sian Jones.
February output levels went down at the joint-strongest pace since December 2012. New order recorded a fourth successive monthly decrease, the fastest since October 2012. Manufacturers indicated an increase in input prices in February, due to higher raw material costs, the second weakest since August 2017.
“Despite a contraction in new business, manufacturers increased their factory gate charges at the fastest rate since September 2018. Unsurprisingly, however, business confidence remained muted. Subdued external demand conditions and increased uncertainty weighed heavily on panelists’ expectations. In addition, firms pulled back their buying activity as both pre- and post-production stocks declined,” Jones added.