Czech Manufacturing Downturn Quickest In 5 Months

(RTTNews) - The Czech Republic's manufacturing activity deteriorated at the fastest pace in five months in December, survey data from S&P Global showed on Thursday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 44.8 in November from 46.0 in October. Any reading below 50 indicates contraction in the sector.

The survey revealed that the overall downturn was driven by a sharper contraction in output and continued drop in new orders. Total new sales were dampened by muted demand from customers in key industries and export markets.

On the price front, input cost inflation softened further to the lowest since May. Consequently, firms reduced their selling prices, though only marginally.

Firms scaled back their workforce numbers in December despite output expectations improving to the strongest in three months. Firms also lowered their input buying due to weaker production requirements and the use of stocks to supplement output.

"Looking forward, however, manufacturers were more optimistic in the outlook for output over the next year as hopes of a rebound in demand in 2025 strengthened," Sian Jones, Principal Economist at S&P Global Market Intelligence, said.