Czechia’s PMI index compiled monthly by market intelligence company S&P Global improved to 46.6 in January amid a softer decline in the country’s manufacturing.

The figure was up on 44.8 registered in December and 46 registered in November, but still below the 50-point mark separating growth and decline, where the index has remained since June 2022.

“Czech manufacturers signalled a less marked decline in the health of the sector as 2025 began. Although the downturn was solid, with further contractions in output and new orders, rates of decrease eased,” commented Sian Jones, principal economist at S&P Global Market Intelligence.

“Challenges continued to come from key industry and export markets, with interest from domestic construction and machinery sectors, alongside demand from Germany, reportedly waning again,” she added.

Although the pace of contraction was the slowest since October, Czech companies still coped with muted demand conditions, particularly in the European markets, with the challenging sales environment in Germany singled out by respondents.

Higher cost burdens involving materials such as wood products, metal and foodstuff were also reported, as was a reduction in selling prices for the fourth consecutive month, and continued staff reductions, which, however, occurred at the slowest pace since March 2024.

Outlook confidence improved, however, and the optimism was at its highest since August 2024.   

“Firms were more upbeat in their year-ahead outlook,” Jones noted, adding that “our current forecast for industrial production expects a rise of 1.8% on the year in 2025.”