Czech Factory Activity Contracts Most In 9 Months

(RTTNews) - The Czech Republic's manufacturing downturn deepened in October amid faster falls in output and new orders, survey data from S&P Global showed on Monday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 47.2 in October from 49.2 in September. Any reading below 50 indicates contraction in the sector.

Manufacturers reduced output levels due to weak customer demand, and the pace of decline was the sharpest since January, as in the case of new orders. Foreign demand also remained weak, with the new export order falling at the quickest rate in six months.

Firms also reduced their workforce numbers, linked to cost-cutting efforts and weaker new orders.

On the price front, input cost inflation eased to a 20-month low due to lower prices for oil-derived products and weak demand for inputs. Selling prices dropped amid muted demand conditions and competitive pressures.

Looking ahead, goods producers remained optimistic overall about expected output over the year ahead, though they expressed concerns surrounding the longevity of the current downturn in customer demand. Moreover, the degree of confidence eased to the lowest since December 2024.