FX.co ★ Czechia Factory Growth Slows in July

The Czech Manufacturing PMI declined to 52.2 in July 2026 from 53.9 in June, when it had reached its highest level since April 2022. The latest figure was the joint-weakest since February (matching May 2026), indicating a slowdown in growth for both output and new orders compared with June.

Even so, new orders continued to be underpinned by foreign demand, with new export sales rising at their fastest pace since August 2021. At the same time, pressure on balance sheets reportedly prompted firms to curb growth in input purchases and pre-production inventories, and also contributed to a renewed fall in employment.

Backlogs of work continued to build at a solid rate as supply chain pressures persisted, although the intensity of these pressures eased somewhat.

On the cost side, both input cost and output price inflation slowed in July but remained high by historical standards, as prices for key inputs such as metals and chemicals continued to rise sharply. Business confidence slipped to a three-month low but stayed elevated in historical terms.