Czech Manufacturing Rebounds To Two Year High

The Czech Republic’s manufacturing sector increased in November, survey data from IHS Markit showed on Tuesday.

The headline manufacturing Purchasing Managers’ Index, or PMI, rose to 53.9 in November from 51.9 in October. Economists had forecast a score of 51.3.

Any reading above 50 indicates expansion in the sector.

New orders increased at the fastest pace since July 2018. New business expanded solidly midway through the fourth quarter and output rose modestly.

Production grew at a softer pace since August as Covid-19 restrictions and employee sickness placed pressure on capacity.

The rate of job creation was marginal and the rate of backlog accumulation was solid in November.

Suppliers’ delivery times lengthened in November to the greatest extend since April’s record.

Input buying increased at the sharpest rate for over two years. Input costs increased at the fastest pace since February last year and output charges remained unchanged.

The 12-month outlook for output were more confident and sentiment was buoyed to return to pre-pandemic output levels.

“Renewed virus related restrictions both domestically and in key export markets, however, stifled forecasts towards manufacturing production,” Sian Jones, an economist at IHS Markit, said.