Activity in the Czech manufacturing sector increased again in December

Activity in the Czech manufacturing sector increased again in December

Activity in the manufacturing sector in the Czech Republic increased again in December, for the fourth month in a row. And more than economists estimated. This was shown on Monday by a survey by IHS Markit. Specifically, the Purchasing Managers' Index (PMI) from the Czech manufacturing sector rose to 57 in December 2020 from 53.9 points in the previous month. It thus exceeded the estimates of analysts, who expected it to rise to 54.4 points. The December PMI of the Czech manufacturing sector was the highest since April 2018 and at the same time significantly deviated from the limit of 50 points, which separates the decline in activity in the sector from its growth. The survey also revealed that production, new orders and employment in production picked up pace. In terms of prices, input price growth accelerated due to a shortage of suppliers and higher demand for raw materials. Output prices also increased in December for the first time in the last year 2020. At the same time, business sentiment in the Czech Republic reached its highest level since August 2018 last December, as companies there expect better global economic conditions in 2021.