Poland: Manufacturing PMI falls to six-month low in May
June 1, 2017
The Manufacturing Purchasing Managers’ Index (PMI) fell from April’s 54.1 to 52.7 in May, according to IHS Markit. Although the index fell to a six-month low, it remains firmly above the 50-threshold that separates expansion from contraction in the manufacturing sector, where it has been since October 2014.
May’s reading reflected that output and new orders expanded at weaker rates. Growth in new orders was dragged by lower bookings from the country, while overseas demand accelerated. As a result, job creation slowed compared to last month. Higher raw material prices continued to exert upward pressure on input costs, albeit at a slower pace. In turn, firms passed on the burden to customers. Sam Teague, economist at IHS Markit confirmed the bright picture, adding that, “although the latest headline PMI dipped to a six-month low in May, a solid overall expansion was still indicated, highlighting the underlying strength of the Polish manufacturing sector.”