Poland: Manufacturing PMI edges up in August
September 1, 2017
The Manufacturing Purchasing Managers’ Index (PMI) inched up from 52.3 in July to 52.5 in August, according to IHS Markit. The index now lies slightly further above the 50-point threshold that distinguishes expansion from contraction in the manufacturing sector, where it has been for nearly three years.
The higher print in August was partly underpinned by expansions in output and new orders, both domestic and foreign. Notably, backlog orders increased for the first time in two-and-a-half years, likely due to labor shortages and supply constraints. Average costs firms are facing increased in August, however, prompting them to raise output prices to transfer part of the cost to customers. Meanwhile, employment growth ticked down, but remained positive. Business sentiment was buoyant in August, hitting a four-month high thanks to a better outlook in the export market, the release of new products and business investment.
Sam Teague, an economist at IHS Markit, confirmed the bright report, adding that, “August’s round of PMI data suggests a further solid rate of Polish manufacturing growth, with the headline figure partially recovering from the eight-month low registered in July.”
Author: Lindsey Ice, Economist