Czech, Polish manufacturing PMI indices fall in July

Czech and Polish manufacturing business sentiment hints at some deceleration of economic activity as PMI indices fell to 11-month lows in July. However, both regional indices comfortably hover above the key 50 level and their long-run averages.

Significantly, both nations recorded that new export orders also rose at a weaker rate, the slowest since November 2016 on the case of the Czech Republic.

“We do not draw strong conclusions from the above mentioned reports as deterioration in regional business sentiment clearly matches the behaviour of the German Ifo index (or EMU PMI respectively). Still, we should expect that hard data form the Czech and Polish industry might be slightly worse in the third quarter”, said KBC Market Research in a report.