Poland: Manufacturing PMI rises further into expansionary territory in February
The IHS Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 54.7 in February, rising from 54.5 in January. As such, the index moved further above the 50-threshold, signaling a continued improvement in business conditions from the previous month.
February’s reading largely reflected stronger growth in output—which grew for the thirteenth month running—and new orders, which continued to grow on continued demand both at home and abroad. Moreover, staffing levels increased once again—despite absences due to Covid-19 cases—although firms continued to report material shortages.
On the price front, input prices rose once again, but did so at the slowest rate in a year. As a consequence, output prices rose, but at the slowest pace in 11 months. Lastly, firms’ outlook regarding the coming 12 months remained optimistic overall, amid expectations of strong growth in sales ahead.
Commenting on the latest survey results, Paul Smith, economics director at IHS Markit, said:
“Reading through panel responses, there was a feeling that growth could have been stronger if it were not for ongoing staff absences and material shortages. Although there were signs that supply-side constraints are loosening, these do remain severe and are underpinning inflationary pressures. Firms continue to try and circumvent these problems, looking to buy up goods and materials that come available on the market to bolster their safety stocks, though these efforts are likely exacerbating supply-side difficulties.”