Czech Republic: Manufacturing PMI remains entrenched in contractionary territory in September
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, stood at 44.9 in September, unchanged from last month’s reading. Thus, the index remains well below the critical 50-mark separating expansion from contraction in activity in the manufacturing sector, where it has been for the past 10 months.
September’s reading reflected a continued deterioration of operating conditions in the manufacturing industry. While the rates of decline in output and new business moderated slightly, employment contracted at the fastest pace since November 2009. Some firms cut jobs due to falling production requirements, while others reported that they did not replace voluntary leavers. Meanwhile, input prices rose at the second-slowest pace in over three years and output charges fell amid pressure from clients to discount. Lastly, business confidence remained subdued amid concerns over the ongoing trade war and lackluster demand.