Poland: Manufacturing sector contracts at a softer pace in March
April 1, 2019
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, increased to 48.7 points in March (February: 47.6 points). The index thus moved closer to the 50-point threshold that separates contraction from expansion in the manufacturing sector, where it has been since November 2018.
March’s reading reflected softer falls in output and new orders, which nevertheless continued to be weighed down by protracted weakness in EU economies—in particular, subdued activity in Germany. So much so, that new export business contracted at the sharpest pace in close to ten years. In turn, inventories continued to pile up, employment levels went further down, and backlogs of work fell again. On a brighter note, firms’ production outlook was more upbeat, as they hoped to gain new markets. Lastly, while input inflation remained stable, output prices rose at a faster pace than in February.
Poland Fixed Investment Forecast
FocusEconomics Consensus Forecast panelists expect fixed investment to expand 6.0% in 2019, which is unchanged from last month’s forecast. For 2020, the panel sees fixed investment expanding 4.4%.