Czech manufacturing records strongest improvement since February 2022

Conditions in Czech manufacturing improved significantly in October, reaching their strongest level since February 2022, shortly before Russia's invasion of Ukraine.

The Purchasing Managers' Index (PMI) rose to 55 points from 53.5 in September, S&P Global reported on Monday. A reading above 50 indicates growth, while a figure below that threshold signals contraction.

Conditions in the Czech manufacturing sector have now improved for eight consecutive months. Output, new orders and employment all increased at a faster pace, while exports recorded a marked rise in October.

However, inflationary pressures also intensified, with both input and output prices increasing. Rising prices were identified as the main risk to the sector's development over the next 12 months.