Jan. 2 (Bloomberg) -- Czech manufacturing contracted for a second month in December as new orders declined at a faster pace, an industry gauge showed.
The HSBC Czech Republic Manufacturing PMI was 49.2, compared with 48.6 in November, “indicating a slower overall contraction of the sector” the bank said today in an e-mailed report. A result greater than 50 signals overall growth.
“New business has fallen for two months running, and the latest contraction was the strongest since July 2009,” the bank said in the report, compiled by Markit, a financial information services company. “New export orders also declined for the second successive month, with firms commenting widely on the crisis in Europe affecting demand for goods.”
Czech economic growth depends on demand for its products from the European Union as the bloc buys about 80 percent of the country’s exports, with Germany accounting for a third. The central bank weighed a worsening economic outlook against accelerating inflation when its board voted unanimously to leave the benchmark interest rate at a record-low 0.75 percent for a 13th meeting on Dec. 21.
--Editors: Balazs Penz, Jeffrey Donovan
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