Czech Manufacturing Activity Contracts In January

(RTTNews) - Czech factory activity logged a marginal decline at the start of the year amid renewed fall in new orders, survey data from S&P Global showed on Monday.

The purchasing managers' index, or PMI, for the manufacturing sector dropped to 49.8 in January from 50.4 in December. A reading above 50 suggests expansion, while a score below 50 indicates contraction in the sector.

The fresh fall in new orders was due to weak demand conditions, with subsequent cost-cutting initiatives triggering falls in input buying and employment. Export orders fell for the first time in three months amid subdued demand from Germany and tough international competition.

Meanwhile, production levels continued to rise in January and were only marginally below the series average and the sharpest since February 2022.

On the price front, input price inflation accelerated to a three-year high, linked to higher supplier and raw material costs along with certification fees relating to new carbon emission regulations. As a result, selling price inflation rose to the steepest since February 2023.

Looking ahead, output expectations of Czech manufacturers remained positive over the year ahead, and the degree of confidence was historically elevated and the strongest since June 2025 amid hopes of stronger demand conditions.