Poland PMI June 2020

Poland

Poland: Deterioration in manufacturing conditions eases further in June

July 1, 2020

The IHS Markit manufacturing Purchasing Managers’ Index (PMI) recovered further ground and rose from May’s 40.6 to 47.2 in June. However, the index remained stuck below the crucial 50-threshold, indicating worsening conditions in the manufacturing sector, where it has been for over one year.

The improvement in the headline PMI came on the back of softer declines in output, new orders and employment. That sad, production and new orders continued to contract, and exports also kept falling. As a consequence, manufacturers reduced their staff numbers, although the pace of job shedding softened. On the price front, input costs rose again while firms continued to cut their output prices in a bid to attract clients, thus weighing on profit margins. Meanwhile, businesses sentiment improved in June on a stronger production outlook.

Commenting on the release, Lewis Copper, economist at HIS Markit, stated:

“While some may be surprised that the headline figure has not soared into growth territory following the collapse in activity witnessed in the spring, it should be remembered that the manufacturing sector was experiencing deteriorating conditions well before the coronavirus crisis took hold – the PMI has languished below 50.0 since November 2018, the longest downturn in over 17 years.”

FocusEconomics panelists expect industrial output to fall 5.3% in 2020, which is down 1.3 percentage points from last month’s forecast. For 2021, the panel expects growth in industrial output of 5.5%.


Author: Massimo Bassetti, Senior Economist

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Poland PMI June 20 20

Note: Markit Poland Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month, and below 50 an overall decrease.
Source: IHS Markit.


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