The Czech Manufacturing PMI climbed to 52.8 in March 2026 from 50.0 in February, beating market expectations of 50.0. Operating conditions improved at the fastest rate since April 2022, supported by the strongest rise in new orders since February 2022, driven by both domestic and export demand. Output growth accelerated to its highest level since January 2022, and firms increased their purchasing of inputs for the first time since May 2022.
Despite the overall improvement, employment fell for the third consecutive month, even as backlogs of work grew at the sharpest pace in more than four years. Supplier delivery times lengthened markedly, with vendor performance deteriorating to the greatest extent in over four years, reflecting significant logistics disruptions related to the war in the Middle East.
Rising energy and oil prices led to the fastest increase in input costs since October 2022, although output charges rose at a more moderate rate. Nonetheless, manufacturers remained optimistic about future production, with business confidence reaching its highest level in just over four years.
