Czech PMI posts 46.1 in May

Czech PMI posts 46.1 in May
/ bne IntelliNews
By Albin Sybera June 4, 2024

The Czech Manufacturing Purchasing Managers’ Index (PMI) compiled monthly by market intelligence company S&P Global posted 46.1 in May.

This is an improvement from 44.7 in April, although still indicating a decline in the country’s manufacturing sector, which it has done since June 2022.  

“Czech manufacturers continued to see output and new orders decline as demand conditions remained a challenge,” commented Sian Jones, Principal Economist at S&P Global Market Intelligence.

“Difficulties in the manufacturing sectors of key export destinations, including Germany, and strain on customer spending weighed on new sales intakes,” she added, noting the softened rate of the decline.

The rate of deterioration was the second-weakest since August 2022, S&P highlighted, but pointed to the weak demand throughout its report. The subdued demand translated into reduced input, while companies also coped with cost burdens, which were on the rise for a fourth consecutive month.  

Staff layoffs continued and companies also resorted to stock depletions. However, the confidence was the second-highest since April 2022, fuelled by prospects of accessing new export venues.

“The rate of charge inflation picked up to the fastest since April 2023, as upside inflationary risks remain a challenge for the Czech National Bank (CNB)," Jones also noted before concluding on improved output expectations registered among manufacturers.