Page 18 - CE Outlook Regions 2023

As in the previous months, the growth has been driven by production in
the car industry sector and the m/m decrease was also a result of a
new supply chain disruption in the car industry. As analysts and
statisticians note, the growth is also influenced by the low comparative
base from 2021 when the car industry struggled with the global supply
chain crisis.

The Czech Manufacturing Purchasing Managers’ Index (PMI) has been
significantly deteriorating in the second half of 2022. In September, it
dropped to 44.7, its lowest level since May 2020, and in October it saw
an even steeper fall to 41.7, followed by 41.6 in November. The index is
well below the 50pt threshold between growth (+50) and decline (-50).
Cost burdens are driving waning demand and decreasing orders below
autumn market estimates.

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