Czech manufacturing performance deteriorated for a third month in June as new export business in the sector fell for an eight month running due to the ongoing crisis and uncertainty in Western European markets, an industry gauge published Monday showed.
Czech manufacturing new orders dropped sharply in May contributing to “the greatest overall worsening in business conditions in the goods-producing sector since August 2009,” an industry gauge said Friday.
Overall business conditions in the Czech Republic saw a marginal deterioration in April, primarily reflecting new orders, employment and stocks of purchases, according to the latest HSBC Czech Republic Manufacturing PMI, with the index dropping to 49.7 in April from 52.1 in March.
The Czech manufacturing sector continued to record strong expansion at the start of the second quarter, the HSBC Czech Republic Manufacturing PMI released on Monday shows. The PMI composite rose in April from 58.6 to 59.0, the fourth-highest since the survey began in July 2001.
Czech manufacturing expansion last month slowed from a record pace in January due to a weaker inflow of new orders, the HSBC Czech Republic Manufacturing PMI released on Tuesday shows. The PMI composite index fell to 59.8 in February from 60.5 in the previous month; a reading greater than 50 signals overall growth.
Domestic demand is driving an increase in manufacturing performance in the Czech Republic, with the HSBC/Markit Purchasing Managers’ Index (PMI) for the Czech Republic hitting a new record in January, showing that trends at the end of 2010 are continuing. The growth is also leading to an increase in inflationary pressures, as commodity prices rise.
Czech manufacturing expanded in December 2010 the most since August 2007 on the back of an accelerated inflow of new orders, according to the latest HSBC Czech Republic Manufacturing PMI, a manufacturing performance index. The December reading was also the fourth-highest in the survey’s history while manufacturing employment in the Czech Republic rose for the tenth month running.