FX.co ★ Czech Republic Manufacturing Slump Deepens

The S&P Global Czechia Manufacturing PMI decreased to 47.2 in October 2025 from 49.2 in September, falling short of market expectations set at 49.5. This marked the fourth consecutive month of contraction and represented the most significant decline since January, largely due to continued reductions in both production output and new orders. Additionally, new export orders have been on a downward trend since March 2022, with October experiencing the steepest decline in six months. Despite a slight increase in backlogs, companies continued to adopt retrenchment strategies, further cutting employment and reducing input purchases. This alleviated pressure on supplier capacity, as lead times extended at the mildest rate observed since July. Concurrently, input price inflation dropped to its lowest point since February 2024, while selling prices continued to fall. Business sentiment declined to its weakest level since December of the previous year, amidst concerns regarding the duration of the ongoing downturn in customer demand.