Czech Manufacturing Contraction Continues In September

(RTTNews) - The Czech Republic's manufacturing sector continued its diminishing trend in September amid marked declines in output and new orders, survey data from S&P Global showed on Monday.

The purchasing managers' index, or PMI, for the manufacturing sector fell to 41.7 in September from 42.7 in August. Any reading below 50 indicates contraction in the sector.

New orders fell for the nineteenth successive month in September as demand conditions slumped further, with increased mentions of clients cancelling orders.

Due to worsening market conditions across key export partners, foreign client demand also dropped quickly.

Although it has eased since May, the rate of decline in production volumes was still historically marked in September.

Subsequently, firms reduced their workforce numbers, and the pace of job shedding was the sharpest since June 2020.

On the price front, due to muted demand for goods and inputs, firms and suppliers cut input costs and output charges to drive sales.