Czech Republic: Manufacturing PMI falls in July
The S&P Global Czech Republic Manufacturing Purchasing Managers’ Index (PMI) fell to 43.8 in July from 45.3 in June. As a result, the index moved further below the 50.0 no-change threshold—where it has languished for 26 months—and signaled a faster deterioration in manufacturing-sector operating conditions compared to the previous month.
July’s downturn was primarily driven by quicker drops in output—the steepest since November 2022—and new orders amid weak client demand. The fall in new export orders also quickened, particularly from key partners like Germany and France. More positively, employment depletion slowed down.
Regarding prices, higher sea freight, energy and raw material costs pushed cost inflation to the highest level since January 2023. Despite sharply rising costs, firms largely kept output prices unchanged due to competition and weak demand. A sustained period of subdued demand and reduced production resulted in business confidence dipping to a five-month low.