Poland: Manufacturing PMI signals strong growth at the start of Q4
November 2, 2017
According to IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) dipped to 53.4 in October from 53.7 a month earlier, remaining well above the 50-point threshold that distinguishes expansion from contraction in the manufacturing sector—where it has been for just over three years, the longest expansionary sequence since the survey started in June 1998.
October’ strong print was underpinned by expansions in new orders and output, with the former matching September’s 31-month record growth rate and the latter easing only marginally from the previous month’s print. This translated into firms hiring more staff, resuming an over-four-year sequence of job creation which came to a halt in September. The increase in employment, however, couldn’t prevent a further increase in backlog orders. On the price front, input cost inflation accelerated further leading output prices to rise at the second-fastest pace in six-and-a-half years. Business sentiment was once again buoyant in October, with firms firmly positive in their expectations of high future output levels.
Trevor Balchin, Economics Director at IHS Markit, supported the strong narrative, adding that, “Poland’s manufacturers started the fourth quarter on a solid footing, according to the October PMI data. Moreover, with new order growth unchanged from September’s two-and-a-half year high, the sector looks set to maintain this momentum towards the end of 2017. The PMI registered 53.4, which equalled the trend figure for 2017 so far. This means the goods-producing sector is on course for its best annual performance since 2010.”