01.09.202508:20:38UTC+00Czech Republic Manufacturing Activity Dips Further

In August 2025, the S&P Global Czechia Manufacturing PMI slightly declined to 49.4 from July's figure of 49.7, indicating a mild weakening in the industry's operating conditions. This drop was largely due to reduced new export orders, influenced by geopolitical uncertainties and diminished demand from Germany. Production levels remained stagnant, hindered by logistical issues, delayed material supplies, and the introduction of new US tariffs. Although there was a moderate rise in overall new orders driven by requests from the machinery and construction sectors, growth was not substantial. Moreover, supplier lead times experienced their most significant extension since November 2024, posing challenges for firms to enhance activities despite heightened demand. On the pricing front, inflation in input costs moderated due to a stronger koruna, which decreased import prices. However, manufacturers lowered output charges for the third month in a row to boost demand. Looking forward, producer confidence improved due to anticipated investments and product launches, yet companies remained cautious, opting to reduce staffing and input purchases to maintain profit margins in a delicately balanced market.