Czech PMI drops significantly in June

Conditions in the Czech manufacturing sector deteriorated significantly in June, with the IHS Manufacturing Purchasing Managers Index (PMI) dropping to 40.8 points, compared to 42.8 points in May.

Production and new orders fell at the steepest pace in six months, while employment fell at the fastest pace since July 2020. According to experts, the main factor behind the drop is sluggish demand, which failed to recover despite falling prices.

The 50-point index is a dividing line between growth and decline, with a figure above 50 points signalling an overall improvement in the sector. The index tracks production, new orders, employment, delivery dates, and supplies.