Czech Republic: Manufacturing PMI falls in June
The S&P Global Czech Republic Manufacturing Purchasing Managers’ Index (PMI) fell to 45.3 in June from 46.1 in May. As a result, the index moved further below the 50.0 no-change threshold—where it has languished for 25 months—and signaled a faster deterioration in manufacturing-sector operating conditions compared to the previous month.
June’s decline was primarily driven by a sharper fall in new orders, which reflected weak demand conditions both domestically and in key export markets. Similarly, the contraction in production gathered pace. These deteriorations in output and new orders, in turn, led to a quicker decrease in employment—the fastest in four months—and input buying as firms adjusted to lower demand.
On the pricing front, cost burdens increased at the steepest rate for over a year, despite weak demand for inputs and an improvement in lead times. However, firms were cautious in passing these costs onto customers, resulting in only a marginal rise in selling prices. Lastly, business sentiment fell to a four-month low.