Financial News: Czech Manufacturing Growth Strongest Since April 2022

Czech Manufacturing Growth Strongest Since April 2022

04/01/2026 - 10:53:00 (RTTNews)

(RTTNews) - Czech factory activity logged renewed expansion in March and at the quickest pace in nearly four years amid favorable demand conditions, survey data from S&P Global showed on Wednesday.

The purchasing managers' index, or PMI, for the manufacturing sector rose to 52.8 in March from 50.0 in February. A reading above 50 suggests expansion, while a score below 50 indicates contraction in the sector.

The growth in the end of the first quarter was driven by sharper upturn in output and a renewed rise in new orders, which was evident in both domestic and foreign markets. International sales were boosted by more demand from customers in Europe.

Meanwhile, supply chain disruptions worsened in March, linked with sea freight and re-routed logistics due to war in the Middle East. Firms also raised their purchasing activity for the first time since May 2022 in an effort to stockpile raw materials ahead of anticipated shortages and price rises.

On the price front, input price inflation accelerated to the highest level in since October 2022, led by higher energy and oil costs. As a result, selling prices rose at stronger pace. Cost pressures also forced firms to cut employment, though the rate of job shedding was eased.

Looking ahead, manufacturers remained confident about output expectations over the year ahead, underpinned by signs of demand rebounding and investment in new production facilities.

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