Czech Factory Growth Strongest Since Feb 2011

Chelsea West
January 2, 2018

Subsequently, firms raised their average selling prices at the fastest pace since February.

The official Purchasing Managers' Index (PMI) released on Sunday dipped to 51.6 in December, down from 51.8 in November and in line with forecasts from economists in a Reuters poll.

The pickup in December's manufacturing PMI came on the back of strong demand both at home and overseas.

Last month, euro zone manufacturers enjoyed their strongest growth since PMI records began more than 20 years ago, easily outpacing British peers. "At the broad market group level, growth was recorded across all three monitored categories (consumer, intermediate and investment)", the Nikkei statement said.

The upward movement in the headline index was driven by a sharp increase in output.

Nikkei evaluated that one of the factors leading to the improvement in operating conditions was a return to production growth. The level of new contracts received from overseas - mainly from Asia, the United States and Europe - rose at the fastest rate in the history of the survey.

"Panellists commented on reduced volumes of new business". In fact, job creation accelerated to the strongest since August 2012, the survey said.

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Despite these additional resources and a slight uptick in stocks of finished goods, manufacturers' backlogs of work increased for an eighth successive month in December.

China's manufacturing sector continued to expand in December, pointing to economic resilience in the country's factory sector.

Both new export orders and overall new business received by manufacturers increased at the quickest clip in four months, according to the survey, which is sponsored by Caixin and compiled by worldwide information and data analytics provider IHS Markit Ltd. An expectation of an improvement in economic conditions was cited as the key factor behind positive sentiment.

Czech manufacturing activity expanded at the sharpest pace in almost seven years in December, survey data from IHS Markit showed Tuesday.

The uptrend was driven by stronger market demand from home and global markets, Dodhia added.

Higher prices for raw materials such as steel and other metals pushed up input costs in December, and this in turn led to another push up in prices charged by manufacturers, the data showed.

"Challenges remain as the economy adjusts to recent shocks, but the overall upturn was robust compared to the trend observed for the survey history".

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