Poland: Deterioration in manufacturing conditions eases further in June
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.”