Poland: Manufacturing PMI at nine-month high in November
December 1, 2017
According to IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) rose to a nine-month high of 54.2 in November, up from 53.4 in the prior month. It thus moved further above the 50-point threshold that distinguishes 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.
November’ strong print was underpinned by expansions in new orders and output, with the latter growing at the fastest pace in eight months. This translated into firms hiring more staff, although at a somewhat softer pace than in October, and accumulating more stocks. The increase in employment, moreover, allowed firms to reduce backlog orders. On the price front, input cost inflation accelerated further leading output prices to rise at a sustained pace. Business sentiment was once again buoyant in November, although somewhat weaker, with firms resolutely positive in their expectations of high future output levels.
Trevor Balchin, Economics Director at IHS Markit, supported the strong narrative, adding that, “November PMI data signalled further strong growth of the Polish manufacturing sector towards the end of 2017 […]. The strong November PMI follows the publication of official data for manufacturing production in October, which revealed a 14% year-on-year increase, the fastest growth in nearly seven years.”