Poland: Manufacturing PMI ticks down in May
June 1, 2018
In May, the manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, ticked down 0.6 points to 53.3. It therefore remained comfortably above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has now been for over three years—the longest expansion recorded since the survey began nearly two decades ago.
April’s reading was a nine-month low as gains in output and employment eased, reflecting slower growth in new orders. Although employment gains remained solid, manufacturing capacity pressures sent backlogs of work skyward, lengthening supplier delivery times. Heavy buying activity put further strain on supply chains, contributing to delays. Moreover, buying and selling prices continued to rise sharply, with firms reporting the impact of the weaker zloty. Meanwhile, firms remained generally upbeat; new machinery and strong growth prospects kept them broadly optimistic.
Poland Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect fixed investment to expand 6.0% in 2018, which is unchanged from last month’s estimate. For 2019, the panel sees fixed investment expanding 5.2%.
Author: Christopher Thomas, Economist