Czech Manufacturing Growth Remains Strong

The Czech Manufacturing PMI fell slightly to 52.2 in May 2026 from 52.9 in April but came in above expectations of 51.9. While the reading was the lowest in three months, it remained above the long-run series average. Output, total new orders, and export orders all continued to rise, albeit at a slower pace, amid supply disruptions and mounting cost pressures linked to the Middle East war. Supplier delivery delays remained severe, with lead times lengthening to one of the greatest extents in nearly four years. The rate of job shedding accelerated to its sharpest since November 2025. Meanwhile, purchasing activity expanded at the fastest pace since April 2022 as firms sought to build safety stocks. On prices, input cost inflation eased from April's level but remained the second-highest since June 2022, while output price inflation rose to its highest since October 2022. Lastly, business confidence strengthened, supported by stronger sales initiatives and planned investment.

The Czech Manufacturing PMI edged up to 52.9 in April 2026 from 52.8 in March, beating market forecasts of 51.4. The latest figure was the highest in four years, supported by expansions in output and new orders amid resilient demand, as European companies sought to localize supply chains. Meanwhile, firms increased their input purchases at the quickest pace in four years, with stocks of inputs rising for a second month as the war in the Middle East caused shortages of key materials. While backlogs of work accumulated again due to capacity constraints, cost-saving initiatives led to a reduction in employment. Regarding prices, input cost inflation hit its highest since May 2022 and was well above the series trend amid supply shortages and higher raw material costs. Similarly, output prices rose at the fastest pace since January 2023 and was historically elevated. Lastly, output expectations for the year ahead fell to a four-month low on worries about global market uncertainty.

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.