Czech Republic Manufacturing PMI

The Czech Manufacturing PMI rose to 52.8 in March 2026 from 50 in February, surpassing market expectations of 50. The latest data pointed to the strongest improvement in operating conditions since April 2022, with new orders expanding at the quickest pace since February 2022, driven by both domestic and export demand. Output growth reached its highest level since January 2022, and firms increased input purchasing for the first time since May 2022. However, employment declined for the third consecutive month, while backlogs rose at the fastest pace in over four years. Vendor performance also deteriorated to the largest degree logistics issues amid the war in the Middle East. Rising energy and oil costs drove the fastest increase in input prices since October 2022, while output charges rose at a more moderate pace. Still, producers remained confident of output growth over the coming year, with sentiment reaching its highest level in just over four years.

The Czech Manufacturing PMI edged up to 50 in February 2026 from 49.8 in January, but below market expectations of 50.4. Production expanded at the fastest pace in four years; however, underlying data pointed to ongoing challenges in demand and rising cost pressures. New orders fell for the second consecutive month amid weaker sales environment and heightened competition. Consequently, firms reduced employment and scaled back input purchases. Capacity constraints led to another rise in backlogs of work, marking the steepest increase in four years. At the same time, shortages of key materials, including metals, drove vendor performance to deteriorate at the joint-fastest rate since November 2024. On the price front, input cost inflation eased slightly but remained elevated, while output prices rose at the fastest pace in three years. Despite these pressures, manufacturers’ confidence in output growth over the coming year strengthened, with optimism reaching a four-year high.

The Czech Manufacturing PMI slipped to 49.8 in January 2026 from 50.4 in the previous month, returning to contraction and missing market expectations of 50.6. The slowdown was driven by a renewed fall in new orders amid weak domestic and export demand, particularly from Germany, and tough global competition. Employment and purchasing activity declined as firms cut costs, while inventories fell due to stock optimisation. Despite softer demand, output rose at the fastest pace since February 2022, supported by efforts to clear backlogs, which increased for the first time in three months. Inflationary pressures intensified, with input costs rising at the sharpest pace in three years on higher supplier, raw material, and carbon-related certification costs, prompting firms to raise selling prices at the steepest rate since February 2023. Nonetheless, business confidence climbed to its highest level since June 2025, supported by expectations of stronger demand and planned tech investment.