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Czech manufacturing activity signaled further strong improvement in May, albeit the rate of growth eased since April, survey figures from IHS Markit showed Thursday.

The Purchasing Managers' Index, or PMI, dropped to 56.4 in May from 57.5 in April. Meanwhile, economists had expected the index to rise to 57.9.

However, any reading above 50 indicates expansion in the sector.

Output grew for the tenth successive month in May on the back of higher demand and sharp increase in new orders. Nonetheless, the rate of growth in new orders was the weakest since January.

New export orders rose at the second-fastest rate since January 2015. Job creation continued in May, with workforce numbers increasing at a solid rate.

"Both input and output prices grew at the weakest paces since January, but inflation remained strong as wages and raw material prices rose." Sian Jones, Economist at IHS Markit, said.