The Manufacturing Purchasing Managers’ Index (PMI) for Czechia, compiled monthly by market intelligence company S&P Global, posted 48.3 in March.

Although the March PMI still sits below the 50-point mark separating growth and decline, it is the highest posting since June 2022 and the weakest drop during the contraction period of almost three years.

“Czech manufacturers signalled a further move towards stabilisation in the goods-producing economy, as output and new orders fell at only slight rates,” commented Sian Jones, Principal Economist at S&P Global Market Intelligence.

She added that “reports of new clients wins and less muted foreign demand conditions buoyed companies.”

Although “manufacturers were at their most confident in the outlook for a year,” Jones also pointed out that “challenges remained,” including “caution towards hiring and input buying as firms sought to keep a close eye on outgoings.”

New export orders fell at a slower rate in March, S&P noted, while rising cost burdens persisted at a joint-sharpest since January 2023, and manufacturers raised their selling prices for the first time since last September amid stronger inflationary pressures.   

The country’s manufacturers reported a higher degree of optimism in renewed demand, while Jones concluded that “the recent historically elevated uptick in charge inflation may add to more cautious sentiment regarding monetary policy in 2025.”