Czech Republic Manufacturing Activity Contracts at Faster Pace

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The S&P Global Czechia Manufacturing PMI fell to 49.2 in September 2025 from 49.4 in August, slightly above market expectations of 49.0 and marking the sharpest decline in operating conditions since May. The downturn was driven by a renewed drop in new orders, including the fastest fall in export demand in four months amid weak conditions in key European markets. Output also contracted for a second straight month, though only marginally, while firms reduced employment and input buying again due to subdued demand. Job shedding eased slightly as backlogs rose at the quickest since February 2022. At the same time, muted input demand helped curb cost pressures, with input prices rising at the slowest pace of 2025 so far, while selling prices dropped further due to strong competition. Despite the slump, business confidence strengthened to a three-month high, supported by expectations of a rebound in customer demand, investment in new products, and market expansion.

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