Czech manufacturing contracted sharply in October, with the Purchasing Managers’ Index (PMI) dropping to 47.2 from September’s 49.2 and remaining below the 50-point threshold that separates growth from contraction. The sector recorded its fourth consecutive monthly decline and faced simultaneous drops in production, new orders, employment, and purchasing activity.

Weak demand at home and abroad weighed heavily on performance, with export orders falling at the steepest pace in six months and business confidence sinking to its lowest level of 2025. Analysts noted that the recent optimism among manufacturers was not backed by real demand. “The sector continues to struggle with weak foreign interest, especially from Germany,” said Sian Jones of S&P Global Market Intelligence.

Although input cost inflation eased to a 20-month low thanks to cheaper oil products, the relief was short-lived. Firms continued to cut prices and reduce staff to stay competitive amid high energy costs, regulatory burdens, and pressure from Asian imports. With confidence in future output still subdued, the outlook for the Czech industrial economy remains increasingly uncertain.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo