Central Europe Manufacturing Accelerates as German Recovery Drives Exports
Central European manufacturing expanded in November as the euro area’s economic recovery boosted export demand, according to purchasing managers’ indexes published today.
The HSBC PMI was 57.3 in the Czech Republic in November, compared with 57.2 in the previous month, the bank said today in an e-mailed report. In Poland, the Markit Economics PMI advanced to 55.9 from 55.6 in October, the third-highest reading in the survey’s history. In Hungary, the PMI rose to 54.9 from 51.5 in October, the Hungarian Logistics, Purchasing and Inventory Society said. A value above 50 signals growth.
East European manufacturing is expanding as most countries in the region recover from recessions last year, helped by rising export demand from Germany. Poland was the only country in the European Union to avert a recession in 2009.
"It seems that the strength of industry in these countries owes much to robust manufacturing growth in core eurozone countries, notably Germany," Neil Shearing, a London-based economist at Capital Economics, said in a research note today.
The zloty traded at 4.0227 per euro at 1:41 p.m. in Warsaw from 4.0255 yesterday, strengthening for a second day. The koruna firmed for the first day in five, to 24.92 per euro from 24.965 and the forint advanced for a second day to 279.92 per euro from 280.92.
Poland’s 2010 gross domestic product is forecast by the government and the World Bank to grow 3.5 percent, allowing the country to outperform other EU members for a third year.
The Czech economy may grow 2.3 percent this year, the Prague-based Ceska Narodni Banka said on Nov. 4. Hungary’s economy, which contracted 6.7 percent last year, will grow 1.1 percent this year and 3.1 percent next year, the central bank in Budapest said today.
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