Czechia Manufacturing Activity Strongest Since 2022

The Czech Manufacturing PMI rose to 55 in October 2026 from 53.5 in September, its highest since February 2022 and above expectations of 53. The reading remained well above its long-run average of 51.9, signalling broad-based expansion. New orders grew for an eighth straight month at their fastest pace since February 2022, supported by strong export demand, with exports expanding at their fastest rate since August 2021. Output rose for an eleventh consecutive month, while employment growth reached its strongest since January 2022. Purchasing activity and inventories also increased, despite longer supplier delivery times caused by chip shortages and supply-chain disruptions. Meanwhile, inflationary pressures intensified, with input costs rising at their fastest pace since June and output prices recording their strongest increase since July. Inflation concerns weighed on confidence, with 12-month expectations falling to their weakest since April.

The Czech Manufacturing PMI fell to 53.5 in September 2026 from 54.1 in August, below the expected 53.9, but still signaled a solid improvement in operating conditions. Output and new orders continued to rise, although growth eased from August. New export sales also expanded at a slower pace. Employment recorded its strongest increase since April 2022 as firms expanded capacity to meet higher production requirements. Backlogs rose for the ninth consecutive month, while supplier delivery times deteriorated at the fastest pace in three months amid transportation delays, material shortages and vendor capacity constraints. Input cost inflation accelerated, driven by higher energy, fuel and supplier costs, while output-price inflation slowed to its weakest since January. Purchasing activity increased, but inventories declined, with stocks of purchases falling for the first time since February. Business confidence stayed positive overall, despite dips.

The Czech Manufacturing PMI rose to 54.1 in August 2026 from 52.2 in July, marking the strongest improvement in operating conditions since April 2022. Growth accelerated in output and new orders, with new business rising at the fastest pace since February 2022, supported by stronger international demand. New export sales also increased at a solid pace, though growth eased from July. Employment resumed growth as firms responded to stronger demand, while backlogs accumulated at the fastest pace since December 2021 amid worsening supplier delays, material shortages and logistics issues. Input cost and selling-price inflation eased but remained elevated. Firms increased purchasing and safety stocks, while finished-goods inventories declined. Business confidence also strengthened to a five-month high, supported by expectations of stronger demand and planned machinery investment.