Poland: Growth in the manufacturing sector slows but remains robust in February
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, dipped to 53.7 in January, down from January’s 54.6. It nevertheless 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.
February’s moderation was due to slower growth in output, new orders and employment. Production nonetheless expanded robustly, driven a robust rise in new orders. Growth in new orders benefited from both resilient domestic and external demand, with foreign demand coming mainly from the EU. This brought firms to hire more staff and led to the second month that backlogs of work accumulated. On the price front, both input cost and output price inflation softened, despite remaining strong overall. Business sentiment was once again buoyant in February, as firms remained broadly optimistic in their expectations on new orders.
Trevor Balchin, Economics Director at IHS Markit, commented on the positive momentum in manufacturing activity, adding that, “The Polish manufacturing sector continued to grow strongly in February, despite a slight loss of momentum since the turn of the year.”