The Manufacturing Purchasing Managers’ Index (PMI) compiled monthly by market intelligence company S&P Global posted 45.3 in June for Czechia.  

The PMI returned to a downward trajectory in June following 46.1 posted in May, which was an improvement on the 44.7 figure posted in April.

Czech PMI has remained below the 50-point mark separating growth and decline for two years now, since June 2022.

“The midway point of the year provided a setback for the Czech manufacturing sector following an easing decline in May. Contractions in output, new orders, purchasing and employment all regained strength amid challenging demand conditions at home and in key export markets,” commented Sian Jones, principal economist at S&P Global Market Intelligence.

S&P highlighted muted demand conditions on both domestic and key export markets in Europe and US, which translated to a drop in new orders and production levels. Czech manufacturers registered the lowest degree of confidence in the year ahead since February and the fastest decline in employment in four months. S&P also noted that staff layoffs included full-time workers.    

Jones also stated that “the fall in new orders was one of the slowest in over two years, suggesting that sacrifices made on margins suppressed the loss of sales to some degree,” adding that “goods producers remained confident of an increase in output over the next year.”

Jones concluded that S&P currently forecasts improvement in industrial production further into the year, “with a rise of 1.7% on the year in 2024.“