The S&P Global Czechia Manufacturing PMI rose to 48.3 in March 2025 from 47.7 in the previous month, but missing market forecasts of 48.5.
This marked the softest contraction since June 2022, as output and new orders fell at slower rates.
However, challenges remained, with Czech manufacturers staying in retrenchment mode, as employment and input purchases decreased again.
At the same time, backlogs of work dropped.
Moreover, cost pressures intensified, driven by rising raw material prices, particularly for paper products, as well as higher energy bills.
This prompted manufacturers to raise their selling prices for the first time since last September.
Nonetheless, business confidence improved, with firms optimistic that a rebound in customer demand and a renewed expansion in new orders would support future output growth.