Czech Republic: Manufacturing PMI falls to lowest level since May 2009
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, tumbled from 45.9 in June to 43.1 in July, the worst reading in just over a decade. Consequently, the index lies further below the critical 50-point mark separating expansion from contraction in activity in the manufacturing sector.
July’s dip was driven by sharper falls in both output and new orders. Production declined at the fastest pace since May 2009 amid the ongoing weakness in the automobile sector, while new orders contracted sharply due to increased competition and subdued demand. Due to soft demand, manufacturers also cut their staff levels for the fifth month running. On the price front, both input cost and output charge inflation were marginal. Lastly, optimism among firms weakened.