Czech manufacturing activity recorded further strong expansion in March, according to survey data from IHS Markit (www.ihsmarkit.com), although its Purchasing Managers’ Index (PMI) dropped to 57.3 (from 58.8 in February — any reading above 50 indicates expansion in the sector).

Both output and new orders continued to rise sharply in March, while employment growth moderated to a six-month low amid on-going labour shortages.

On the price front, input cost inflation accelerated to a four-month high, and growth in selling prices remained sharp.

Expectations for output in the year ahead increased to the second-highest level since January last year.