The seasonally adjusted S&P Global Manufacturing Purchasing
Managers' Index (PMI) for the Czech Republic rose from 41.6 to 42.6 points m/m in December 2022. However, it continued to signal a deterioration in the health of the Czech manufacturing sector.
orders continued to fall faster than production, given the impact of energy and materials prices on customer spending and demand in general. At the same time, Czech manufacturers reduced their workforce at the end of the year and made redundancies in the face
of less stretched capacity. Employment fell at the fastest pace since August 2020. The outlook for manufacturers remained gloomy and negative sentiment intensified. The estimate for industrial production growth in 2023 is 0.7%.