Czech Republic: Manufacturing PMI falls deeper into contractionary territory in November
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, fell to a four-month low of 43.5 in November from 45.0 in October. Thus, the index dropped further below the critical 50-mark separating expansion from contraction in activity in the manufacturing sector, where it has been for one year.
November’s downturn was mainly driven by sharper declines in both output and new orders amid a challenging demand environment at home and abroad, with the latter reflecting fragile conditions in the automotive sector, trade wars and the global manufacturing slowdown. Moreover, manufacturers shed jobs at the fastest rate in over a decade as capacity pressures softened, while business confidence dropped to a series-record low. On the price front, although input costs fell for the first time in over three years in November, firms lifted output charges steeply.