PRAG (dpa-AFX) - The Czech Republic's manufacturing activity deteriorated further in August amid supply chain issues, survey data from S&P Global showed on Monday.
The purchasing managers' index, or PMI, for the manufacturing sector dropped to 49.4 in August from 49.7 in July. Any reading below 50 indicates contraction in the sector.
Output levels broadly stagnated in August, dampened by logistics issues, delayed deliveries of materials and the impact of US tariff policy. Vendor performance was negatively influenced by congested ports, transportation delays and technology issues at suppliers.
On a positive note, new orders grew at the sharpest pace since February 2022 on the back of strong client demand. However, new export business declined slightly amid US tariff policy, geopolitical uncertainty and weak demand from customers in Germany.
The survey revealed that manufacturers lowered their workforce numbers again and input buying was reduced at a sharper pace in a bid to lower costs.
On the price front, input price inflation eased to the weakest since December 2024. The overall inflation was driven by higher costs for foodstuff and metals. Meanwhile, output prices fell for the third successive month.
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