Czech Republic: Manufacturing PMI remains at lowest point since late-2012 in May
June 3, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, remained at April’s 46.6 in May, marking the six successive monthly contraction of the all-important sector and the lowest level since December 2012. Consequently, the index remained below the critical 50-point mark separating expansion from contraction in activity in the manufacturing sector.
May’s reading reflected further falls in output, new business and employment. Production fell at the sharpest pace since December 2012 amid weaker client demand and challenging conditions in the automotive industry. Similarly, new orders declined yet again, most notably from export markets. Due to subdued demand, manufacturers also had to reduce their staff levels—for the third month running—in May. On the price front, input cost inflation softened but output charges continued to rise solidly. Lastly, optimism among firms improved but their output expectations remained weak.
Author: Javier Colato, Economist