Czech PMI drops to lowest level since July 2016

Conditions in the Czech manufacturing industry further worsened in December as measured by the Purchasing Managers Index (PMI), according to IHS Markit.

The PMI dropped in December to 49.7 points, its lowest level since July 2016, and below the 50-point threshold between growth and decline.

The drop was due not only to weaker production growth, but also a decline in new orders. Companies saw a significant decline in export orders in December, the fastest in nearly ten years, IHS Markit economist Sian Jones said.

Weaker confidence among goods producers towards future output stems to a large degree from a slowdown in the wider automotive sector, he said.