FX.co ★ Czech Manufacturing Sector Stabilizes

The Czech Manufacturing PMI inched up to 50.0 in February 2026 from 49.8 in January, but came in below market expectations of 50.4. Output grew at the fastest rate in four years, yet the underlying data continued to signal demand headwinds and mounting cost pressures. New orders declined for a second straight month amid a weaker sales environment and intensified competition. In response, firms cut staffing levels and reduced input purchases. Capacity constraints contributed to a further increase in outstanding business, with backlogs rising at the sharpest pace in four years. At the same time, shortages of key materials, particularly metals, led to a deterioration in supplier performance at the joint-fastest rate since November 2024. On the pricing side, input cost inflation eased slightly but remained elevated, while output charges rose at the quickest pace in three years. Despite these pressures, manufacturers grew more upbeat about future output, with confidence in production for the year ahead climbing to a four-year high.