Czech Republic: Czech republic manufacturing PMI shows signs of improvement
The Czech Republic Manufacturing Purchasing Managers’ Index (PMI) rose to 44.3 in February from 43.0 in January, showing a slight improvement since last month. As a result, the index remained below the 50.0 no-change threshold, but signaled a softer deterioration in manufacturing sector operating conditions compared to the previous month.
This improvement was primarily due to a slower pace of reduction in output and new orders. Despite this, both domestic and external demand conditions remained significantly subdued, leading firms to continue reducing their employment, purchasing, and stock holdings in efforts to decrease expenses.
On the price front, input costs for Czech manufacturers rose for the first time in a year, while selling prices fell for the tenth consecutive month. Lastly, business sentiment in the manufacturing sector improved significantly, reaching its highest level in almost a year.