TNBiz (TNBiz)
Markets  |  July 28, 2012 10:33:46

Markit publish the results of July's Purchasing Managers' Index survey for CR

PRAGUE (MEDIAFAX) - Markit publish the information in the center of the Purchasing Managers' Index (PMI) for the Czech Republic in July. The unexpectedly rose in June to 49.4 points from 47.6 points in May.

The June data by Markit highlighted the overall deterioration in business conditions in the Czech manufacturing sector. Yet, in June compared to May, slightly improved. New orders decreased by a much slower pace, but production has remained relatively constant and employment grew, while in previous months, companies shed workers.

Price pressures weakened further in June. The growth of input prices slowed almost to the border of stagnation and the company reduced prices of finished products at the fastest pace since April 2010. PMI remained neutral in June under the threshold of 50 points, specifically on the value of 49.4 points.During the second quarter, PMI moved an average of about 48.9 points, its worst quarterly average result from the third quarter of 2009, when it stood at 46.7 points. However, the PMI rose from May the worst result for 33 months, from 47.6 points.

New orders weakened in June, as in all previous months of the second quarter. However, the pace of decline slowed down significantly compared to May. New export orders for the Czech manufacturing sector declined in June the eighth month in a row, mainly due to the ongoing crisis and insecurity in the western markets. The pace of decline has weakened, but the current series is the second longest in the history of exploration. Due to the lack of new orders remained on track in June or less production of any changes. Decline in production is managed through the completion of unfinished prevent orders. Backlogs fell for the sixth and the last eight months.

The main positive was the June survey, employment growth, as in the previous two months, letting employers. Purchases of inputs and supplies stagnated steep decline rates. Inflationary pressures were in the manufacturing sector continued to decline. Average input prices rose only slightly, because the pace of price increase since May due to lower prices for metals and building materials has slowed sharply. In a highly competitive environment marked by weak demand, the company reduced the prices of finished goods for the fifth consecutive month, while the fastest rate since April 2010.

Home Manufacturing PMI HSBC Czech Republic is a composite single-digit indicator of overall performance in the manufacturing sector, which tracks changes in the volume of new orders, production, employment, supplier performance and stock inventories. The result is higher than 50 points indicates an overall improvement in the sector.The survey results reflect any changes in the current month compared to the previous month based on data collected mid-month. PMI is a composite index based on five individual indexes with the following weights: new orders of 0.3, the total production of 0.25, 0.2 jobs, delivery times from suppliers 0.15, Stock of Items Purchased 0.1.

Jan Soukup,

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Markit zveřejní výsledky červencového šetření indexu nákupních manažerů pro ČR

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