Czech Republic: Manufacturing PMI falls in July
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 62.0 in July, down from June’s 62.7, which had marked an all-time high. As such, the index remained well above the 50-threshold, signaling a continued improvement in business conditions from the previous month.
July’s reading chiefly reflected somewhat softer expansions in output and new orders compared to the previous month. That said, growth was still upbeat amid strong demand dynamics. Regarding employment, firms raised staff levels due to rising backlogs of word and greater production requirements. On the price front, input cost inflation rose to a new record high in July as supply-chain disruptions continued to push prices upwards, while output charges rose also rose at a record-fast pace as firms passed on cost burdens to clients. Lastly, confidence among Czech manufacturing firms dropped to a five-month low in July as worries over continued supply shortages weighed on sentiment.