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Financial News: Czech Factory Activity Remains In Contraction

Czech Factory Activity Remains In Contraction

06/02/2025 - 07:55:00 (RTTNews)

(RTTNews) - The Czech Republic's manufacturing activity deteriorated at the fastest pace in three months in May amid a renewed fall in new orders, survey data from S&P Global showed on Monday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 48.0 in May from 48.9 in April. Any reading below 50 indicates contraction in the sector.

Weak demand conditions and client uncertainty reportedly drove the solid decrease in new sales, with new export orders declining further, the agency said.

Firms faced shortages of certain raw materials, including foodstuff along with supplier capacity issues.

On the price front, cost pressures intensified in May due to material shortages and higher energy bills. The rate of cost inflation was the second-steepest since July 2024. As a result, selling prices rose further.

Looking ahead, firms remained upbeat in the year-ahead outlook for output as confidence rose to the highest in over three years.

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