Poland: Growth in the manufacturing sector remains robust in March
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, remained unchanged at February’s 53.7 in March. It therefore remained comfortably above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has been for over three years, the longest expansionary sequence since the survey started in June 1998.
March’s result was due to faster growth in output and employment, offsetting slower growth in new orders. Growth in new orders was the weakest since July 2017, restrained by weak new exports. Production nonetheless expanded robustly, prompting firms to hire more staff and leading to increasing backlogs of work. On the price front, both input cost and output price inflation softened further, despite remaining strong overall. Business sentiment was once again buoyant in March, as firms were broadly optimistic in their expectations on new customers and the development of new products.
Trevor Balchin, Economics Director at IHS Markit, commented on the developments in manufacturing activity, adding that, “Although the headline PMI was stable in March, the underlying survey data suggest that business conditions could slow further in April.”