Conditions in the manufacturing sector have improved, with the index at its highest level in four years

According to the Purchasing Managers’ Index (PMI), conditions in the Czech manufacturing sector improved slightly in April. The index rose to 52.9 points from 52.8 in March, marking the best result in four years. The information was released today by S&P Global. A level of 50 points in the index is the threshold between growth and contraction in the sector. However, the increase in the index is likely primarily due to its specific calculation methodology and cannot be interpreted as a genuine improvement, said Vít Hradil, an analyst at Investika, in a statement to the Czech News Agency.

The rise in the index was partly driven by a significant lengthening of supplier delivery times. Under normal circumstances, this would indicate stronger demand, but it is currently linked to trade disruptions caused by the war in the Middle East. The weakening of supply chains was reflected in the sharpest deterioration in delivery quality since mid-2022. Survey participants specifically mentioned the rerouting of logistics routes and problems with supplies from Asia.