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Eastern Europe’s manufacturing sector is looking unexpectedly healthy.
Purchasing managers’ indices for Hungary, the Czech Republic and Turkey were all higher than expected this morning, with Hungary recording a record high for its manufacturing sector’s growth.
A PMI index compiled by the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim) registered 59.5 points in February, up from 57 points in January and the highest rate of growth ever recorded by the index, according to data compiled by Bloomberg. Analysts had expected a dip to 56.4.
Separate PMI indices compiled by IHS Markit showed that the health of the manufacturing sector in the Czech Republic also beat expectations amid higher employment and improving demand, with the index rising to 57.6 in February – the highest level since April 2011 – against expectations of 56, and ahead of January’s 55.7 figure.
In Poland the Markit PMI reading fell to 54.2 in February, disappointing expectations it would hold at the same level as the 54.8 January reading. Markit said that mounting price pressures remained an area of concern for Polish manufacturers, but that their optimism ticked up regardless.
Also among the region’s emerging markets, Turkey’s manufacturing index rose to 49.7 in February – a four-month high – versus expectations of 48.2 and a January reading of 48.7. Still, at under 50, that points to contraction.