Czech manufacturing industry declines again in September, continuing downward trend

The Czech manufacturing industry experienced another setback in September, marking a continuation of the sector’s decline that began in June 2022. According to a report by S&P Global, the Purchasing Managers’ Index (PMI) fell to 46 points in September, down from 46.7 points in August. This reading remains well below the 50-point threshold that separates growth from contraction, signaling ongoing struggles for the industry.

Production volumes continued to drop throughout the month, with many companies citing weak demand as the primary cause. However, the rate of decline was slightly slower compared to the overall trend seen in recent months.

In addition to decreased demand, Czech manufacturers faced challenges with extended supply deadlines and rising operational costs. These increases were largely driven by limited availability of materials and escalating transportation expenses. In response, companies began raising the prices of finished products in April 2023 in an effort to offset these growing costs.

The Czech manufacturing sector remains under pressure as it grapples with persistent headwinds, further highlighting the challenges ahead for industry players.

Source: CTK