FX.co ★ Czechia Manufacturing Decline Eases Further

The S&P Global Czechia Manufacturing PMI increased to 48.3 in March 2025, up from 47.7 in February, but fell short of market expectations set at 48.5. This signifies the mildest downturn since June 2022, attributed to a slower decline in both output and new orders. Despite these signs of improvement, challenges persisted as Czech manufacturers remained in a state of contraction, reflected by continual decreases in employment and input purchases, alongside dwindling work backlogs. Additionally, input cost inflation surged, matching the fastest rate witnessed since January 2023, propelled by escalating raw material costs, particularly for paper products, and increasing energy expenses. In response, manufacturers raised their selling prices for the first time since September of the previous year, registering the steepest uptick since February 2023. Nonetheless, business sentiment improved as companies exhibited optimism, anticipating that an upswing in customer demand and a resurgence in new orders would bolster future output growth.