Czech Republic: Manufacturing PMI drops in March
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) dropped to 54.7 in March from February’s 56.5. However, the index still landed above the critical 50-point threshold that separates expansion from contraction in manufacturing sector activity.
March’s reading chiefly reflected contractions in output and new orders after having grown in the preceding months. Meanwhile, supplier lead times lengthened and stockpiling intensified amid severe supply disruptions. Moreover, the pace of job creation moderated. On the price front, input costs surged at close to a record pace amid soaring costs for energy and fuels. Lastly, output expectations were weakest in 22 months amid the war in Ukraine and strong increases in costs.
Commenting on the release, Siân Jones, senior economist at S&P Global, stated:
“Inflationary pressures and geopolitical uncertainty led to a reduced appetite for spending among both domestic and foreign customers, with some firms highlighting the loss of key export markets in Russia and Ukraine.”