Poland: Contraction in the manufacturing sector eases in December
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, rose to 48.0 in December from November’s 46.7. The index thus remained below the 50-threshold signaling a deterioration in the manufacturing sector, where it has been since November 2018.
December’s less marked contraction was underpinned by softer declines in output and new orders. That said, both output and new orders have now contracted for 14 consecutive months. Lower domestic and external demand continued to be behind the decline, and led firms to shed more jobs, although the pace of job losses was modest overall. Meanwhile, businesses’ expectations rebounded from November’s record low, even though weak general economic prospects and Brexit-related uncertainty continues to weigh on output expectations. On the price front, input price inflation picked up pace, while output prices dipped for the second time in three months.