In December, the Czech Republic experienced the most significant decline in manufacturing activity over the past five months, according to survey data released by S&P Global on Thursday. The manufacturing sector's Purchasing Managers' Index (PMI) fell to 44.8 in November, down from 46.0 in October. A score below 50 signifies a contraction in the sector.
The survey identified a more pronounced reduction in production and a persistent drop in new orders as key contributors to the overall downturn. Weak customer demand from major industries and export markets adversely affected total new sales.
Regarding pricing, input cost inflation decreased further, reaching its lowest point since May, prompting companies to slightly lower their selling prices.
In December, firms reduced their workforce despite output expectations reaching their highest level in three months. Companies also cut back on purchasing inputs due to lower production needs and relied on existing stock to meet output demands.
Looking ahead, manufacturers expressed greater optimism for output in the coming year, fueled by expectations of a demand recovery in 2025, as stated by Sian Jones, Principal Economist at S&P Global Market Intelligence.
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