Poland: Manufacturing PMI falls into contraction territory on declines in new orders
August 1, 2014
The manufacturing Purchasing Managers’ Index (PMI) declined from 50.3 in June to 49.4 in July, according to a release provided by HSBC in collaboration with Markit. The new PMI reading undershot market expectations of a rise to 50.5 and represents the lowest result in more than a year. The index has suffered five consecutive declines and is now below the 50-threshold that indicates expansion in the manufacturing sector.
July’s figure was weighed down by a drop in the new-orders category, which declined at the fastest rate since April. Moreover, new export orders fell for the third straight month and at the fastest rate since October 2012, which was a drag on total new work. On a positive note, employment tallied the third consecutive monthly increase. Meanwhile, inflation pressures remained subdued, with inputs prices rising only marginally and prices for finished goods declining.
Author: Carl Kelly, Economist