Czech Republic: Manufacturing PMI dips to lowest point since late-2012 in April
May 2, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell from 47.3 in March to 46.6 in April, marking the fifth successive monthly contraction of the all-important sector and the lowest reading since December 2012. Consequently, the index moved further below the critical 50-point mark separating expansion from contraction in activity in the manufacturing sector.
April’s downturn reflected continued declines in output, new orders and employment. Due to weaker client demand, production dipped for the fifth month in a row, albeit at a softer pace than in March, while new orders fell yet again in April. Subdued demand conditions also led manufacturers to sharply reduce their staff levels in the surveyed month. On the price front, input cost inflation eased to an over two-year low and output inflation also moderated, but remained solid nonetheless. Lastly, optimism among firms was subdued, in part reflecting concerns over anemic demand from European customers.
Author: Javier Colato, Economist