02.02.202610:23:33UTC+00Czech Manufacturing PMI Returns to Contraction

In January 2026, the Czech Manufacturing PMI declined to 49.8 from 50.4 in December, marking a return to contraction and falling short of the market forecast of 50.6. This downturn was primarily due to a renewed decrease in new orders, driven by subdued domestic and export demand, especially from Germany, amid intense global competition. Employment and purchasing activities saw reductions as companies implemented cost-cutting measures, and inventory levels decreased due to stock optimization strategies. Despite the weakened demand, production increased at the most rapid rate since February 2022, buoyed by efforts to clear backlogs, which saw an uptick for the first time in three months. Inflationary pressures surged, with input costs rising at the fastest rate in three years, driven by heightened supplier costs, raw material expenses, and carbon-related certification charges, leading companies to elevate selling prices at the quickest pace since February 2023. However, business confidence soared to its highest point since June 2025, bolstered by anticipated stronger demand and planned technological investments.