The Czech Manufacturing PMI edged down to 52.2 in May 2026 from 52.9 in April, though it beat market expectations of 51.9. Despite being the lowest reading in three months, the index remained above its long-run series average, signaling ongoing expansion in the sector. Output, total new orders, and new export orders all continued to increase, but at a slower pace, constrained by supply chain disruptions and intensifying cost pressures linked to the war in the Middle East.
Supplier delivery times continued to lengthen sharply, with delays reaching one of the most severe levels seen in nearly four years. At the same time, the pace of job shedding accelerated to its fastest rate since November 2025. In contrast, purchasing activity rose at the quickest rate since April 2022, as manufacturers moved to build up safety stocks.
On the price front, input cost inflation eased slightly from April’s level but remained the second highest since June 2022. Output price inflation, however, accelerated to its strongest rate since October 2022, indicating increased pass-through of costs to customers. Finally, business confidence improved, underpinned by stronger sales efforts and planned investment.
