Poland: Lockdown sends manufacturing activity to all-time low in April
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, tumbled from 42.4 in March to April’s 31.9, as many factories suspended production during the lockdown. The index thus recorded its worst reading since data were first compiled in June 1998. It thus fell further below the 50-threshold, where it has been since November 2018, signaling a sharper deterioration in the manufacturing sector.
April’s collapse reflected plummeting output, new orders and exports, all of which contracted at the sharpest pace on record. Moreover, employment was reduced at a near-record stride, while backlogs of work declined at the fastest pace seen so far. In response to the dramatic crash in activity, companies tried to stimulate demand by cutting their out prices, although input prices continued to rise. On top of that, businesses’ 12-month outlook plummeted to the lowest level on record.