The headline Czech Markit Purchasing Managers' Index (PMI) reading was flat at 46.6, below the 50-point-mark dividing business activity expansion from contraction.

At 0844 GMT, the crown was 0.1pc weaker at 25.854 to the euro, underperforming its central European peers, which were unchanged or stronger.

A Czech trader said the crown continued drifting weaker with nothing providing a reason for it to strengthen.

The Czech central bank has said it foresees stable interest rates, but some analysts say a weaker crown - which contradicts central bank forecasts for gains - could prompt another rate increase later this year.

"There is nothing really strong right now for the crown. Big foreign banks see the crown weaker, so that is a reason for its movement weaker," a local trader said. "We will see some data this week. It is possible to see 25.90 in the days ahead. We are still seeing some lazy trading.".

In contrast, the Hungarian PMI, compiled using a different methodology, jumped to 57.9 in May from 55.1 in April, reflecting continued strength in the Hungarian economy, which expanded by a 15-year-high 5.3% in the first quarter.

The forint was 0.1% stronger in early trade, although a Budapest-based trader said its gains, which saw it move away from nine-month-lows hit last week, were probably losing steam.

"We are near the bottom of the range, so we rather expect the forint to drift weaker," the trader said.

Hungary will publish May inflation data on Friday after April data showed price growth rising to a seven-year-high of 3.9%.

The National Bank of Hungary holds its next meeting on June 25, when policy makers will also discuss the next update of the bank's quarterly inflation report.

"In our view, the likelihood of the downside risks to inflation materialising has fallen since the March meeting," economists at Goldman Sachs said in a note.

"We think the (central bank) is likely to introduce further moderate tightening in monetary conditions in the next MPC meeting."?Reuters