Poland: Manufacturing PMI rises in December, moves further into expansionary territory
January 3, 2022
The IHS Markit Manufacturing Purchasing Managers' Index (PMI) came in at 56.1 in December, rising from 54.4 in November. As such, the index moved further above the 50-threshold, signaling a continued improvement in business conditions from the previous month.
December’s reading largely reflected firmer growth in both output and new orders, although continued reports of difficulties sourcing inputs from vendors will have likely weighed on activity. Meanwhile, foreign demand remained strong and employment rose at a solid rate.
On the price front, input prices rose notably, with output prices also rising as a consequence. Lastly, firms’ outlook regarding the coming 12 months remained optimistic overall, amid expectations of strong growth ahead.
Commenting on the latest survey results, Paul Smith, economics director at IHS Markit, said:
"Poland’s manufacturing economy enjoyed a decent month in December, expanding at a stronger rate as both production and new orders picked up. Underpinned and buoyed by firmer demand, confidence about the future also improved as firms eyed a continuation of these positive trends. However, challenges and risks remain. The emergence of the omicron variant of Covid-19 will naturally lead to concerns that economic recoveries will be knocked off course in the short-term, whilst challenges related to supply-side and inflation persist and show little real signs of easing.”
Author: Stephen Vogado, Economist