FX.co ★ Czech Republic Manufacturing Downturn Deepens

In May 2025, the S&P Global Czechia Manufacturing PMI dropped to 48.0 from 48.9 the month prior, falling short of market predictions of 49.4. This decline indicated the most significant downturn since February, largely attributed to a renewed decrease in new orders. This contraction—the most rapid since January—was spurred by ongoing economic uncertainty and weakening demand both domestically and internationally. Concurrently, companies reported a slightly slower rate of job reductions. On the pricing front, input cost inflation picked up due to supplier shortages and higher energy expenses, although increases in selling prices remained historically moderate. Looking forward, business confidence reached its highest point since February 2022, buoyed by optimism for a rebound in demand and advancements in new product development.