Poland: Manufacturing PMI eases to an eight-month low in July
August 3, 2017
The Manufacturing Purchasing Managers’ Index (PMI) fell to 52.3 in July from 53.1 a month earlier, according to IHS Markit. July’s reading left the index closer to the 50-point threshold that distinguishes expansion in the manufacturing sector—where it has been for nearly three years—and indicated slower growth from a month earlier.
July’s reading, despite indicating an improvement in business conditions, came in at an eight-month low and reflected moderated growth in new orders and production. On the other hand, growth in export orders remained robust and employment accelerated in the month as firms responded to the strong external demand by expanding their workforces. Meanwhile, input costs and output prices both rose solidly in the month. Finally, confidence towards future output growth was once again strong in July. Sam Teague, economist at IHS Markit, commented on the weak report, noting that, “the latest figures follow on from the slowdown seen in the official growth rate for industrial production, which fell to 4.5% year-on-year in June.” Moreover, he added, “the latest PMI data present a downside risk to GDP growth.”
Author: Christopher Thomas, Economist