Czech Republic: Manufacturing PMI falls to lowest level in over two years in July
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) dropped from June’s 49.0 to 46.8 in July, the lowest value in 26 months. Consequently, the index moved further below the critical 50-point threshold that separates an expansion from a contraction in manufacturing sector activity compared to the prior month.
July’s reading chiefly reflected faster falls in output and new orders, and more sustained job shedding. Meanwhile, backlogs of work decreased for the second consecutive month. On the price front, the pace on increase in both input costs and output charges decelerated to the lowest since January and May 2021 respectively, although they remained historically high. Lastly, output expectations fell to their second-lowest level in over two years, weighed down by concerns about the impact of inflation on consumer spending and the Ukraine war.
Commenting on the release, Siân Jones, senior economist at S&P Global, stated:
“We currently forecast industrial production to rise just 1% during 2022 as headwinds to growth exert strain on output and operating conditions in the sector.”