Czech Factory Activity Remains In Contraction

(RTTNews) - The Czech Republic's manufacturing activity deteriorated further in September amid a renewed decline in new orders, survey data from S&P Global showed on Wednesday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 49.2 in September from 49.4 in August. Any reading below 50 indicates contraction in the sector.

Among components, new orders fell for the first time in four months, which was more evident in the foreign market as export orders declined the quickest since May due to weak demand conditions in key export markets in Europe. As a result, companies recorded a second successive monthly decline in output.

Although decreasing at a softer pace, employment and input buying contracted again as subdued demand conditions led to reduced expenditure at companies, the survey said.

Cost pressures softened in September as the rate of input price inflation softened to the slowest in 2025 so far, and firms also reduced their selling prices due to intense competition from international markets and hesitancy among customers.

Looking ahead, firms remained confident about output expectations over the coming year, supported by positive expectations on hopes of a notable pickup in client demand, greater investment in new product ranges, and expansion into new markets.