The S&P Global Czechia Manufacturing PMI fell to 49.4 in August 2025 from 49.7 in July, signaling a slight deterioration in operating conditions. New export orders fell amid geopolitical uncertainty and weaker German demand, while output stagnated due to logistical constraints, delayed materials, and the imposition of US tariffs. Total new orders increased, supported by machinery and construction demand, although growth remained modest. In addition, supplier lead times lengthened at the sharpest pace since November 2024, limiting firms’ ability to raise activity despite stronger demand. On prices, input costs inflation eased on a stronger koruna that lowered import prices, still, manufacturers cut output charges for a third consecutive month to stimulate demand. Looking ahead, confidence among producers rose on investment and product launches, but firms stayed cautious, cutting staff and input purchases to protect margins in a fragile environment.