Czechia’s manufacturing PMI index, compiled monthly by the S&P Global market intelligence company, posted 50.2 in June (chart), returning above the 50-point mark separating growth and decline for the first time in over three years.

This is also up from 48 in May, when it dropped from 48.9 in April, and marks the sharpest increase in production since February 2022, S&P highlighted, while output and new orders returned to growth in June.

“Czech manufacturers signalled a more positive end to the second quarter of 2025. Output and new orders returned to growth, as overall operating conditions improved for the first time in over three years,” commented Sian Jones, Principal Economist at S&P.  

“Nonetheless, goods producers remained in retrenchment mode with regards to employment and input buying,” Jones added, noting that “cost-saving efforts and previously subdued client demand led to continued reductions in each, despite another rise in backlogs of work.”

The modest overall growth of the sector also marks the strongest pace of expansion since February 2022, as panellists reported improvement in client demand and a renewed rise in orders.

International sales remained subdued and new export orders dropped again, preventing a more significant growth.

Despite modest overall improvements and continued shedding of workforce, albeit at the weakest pace in the last 33 months, S&P reported the highest degree of optimism since February 2022.

Backlogs of work increased for the third month in a row, while the rate of inflation eased compared to May.

“On the price front, input costs rose at a slower pace that was also muted in the context of the series history,” Jones noted, adding that “intense competition internationally led to a drop in selling prices, however, as firms sought to boost new export orders.”

S&P expects consumer price inflation to “stand at 2.4% in 2025,” which is where the Czech inflation sat in May after it accelerated on the 1.8% April easing.