Poland: Manufacturing PMI hits over three-year high in March
April 1, 2021
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) increased to 54.3 in March from February’s 53.4, marking the best result since January 2018. As such, the index moved further above the 50-threshold, signaling an improvement in business conditions from the previous month.
March’s upturn largely came on rising new orders and output. New orders expanded at the fastest clip since July last year, chiefly reflecting firmer export demand. Moreover, output rose at the quickest pace in eight months, despite capacity constraints and increasing backlogs. Meanwhile, although employment grew at the fastest rate since June 2018, firms reported staff shortages. On the price front, input costs inflation rose to the highest level since data was first collected in June 1998 amid raw material scarcity, higher transport costs and currency weakness, while output charges increased at the fastest pace since January 2003. Lastly, although business sentiment eased from the previous month due to rising Covid-19 cases, firms remained confident regarding the outlook for output in the coming 12 months.
Author: Hanna Andersson, Economist