Czechia manufacturing index PMI compiled monthly by the S&P Global market intelligence company dropped to 46 in November amid another downturn in operating conditions.

It is down on the 47.2 PMI value registered in October, which was the best figure since mid-2022, though still below the 50-mark separating decline and growth in operating conditions in manufacturing. The downturn has now extended to two-and-a-half years.

“The Czech manufacturing sector hit another obstacle in November, as contractions in output and new orders regained momentum following weak demand domestically and in key export markets,” commented Sian Jones, Principal Economist at S&P Global Market Intelligence.

“Structural issues in the automotive sector and challenges to the German manufacturing economy were highlighted again by panellists as weighing on overall performance,” Jones also stated.

PMI report noted that the pace of job shedding “slowed to the weakest since March,” while the business confidence sank to the lowest on record this year.

A sharp decrease in new orders was registered in November, and “new export orders fell at the quickest pace since July,” PMI wrote, adding that input costs increased for the tenth successive month in November amid greater supplier prices and higher transportation fees.

The level of optimism dropped to the lowest since January although Czech manufacturers maintained high expectations for next year.

“One bright spot was the easing of cost pressures,” Jones said in concluding statements, adding that “although the pace of increase was greater than the average through 2024 so far, it eased and was soft in the context of the series history.”

Jones forecasted consumer price inflation points to ease from 2.7% this year to 2.2% in 2025.