Poland: Manufacturing sector contracts in November
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, fell into pessimistic territory for the first time in over four years in November, logging 49.5 points (October: 50.4 points). The index had waned for six months previous to landing below the 50-point threshold that separates contraction from expansion in the manufacturing sector. Nevertheless, the result was in line with analysts’ expectations of a near-term slowdown of the Polish economy.
November’s reading pointed to contractions in new orders, output and employment—all in line with the recent slowdown across European economies. Flailing demand from Germany held back export orders. Meanwhile, lower volumes of backlogs matched the fall in workforce numbers. On the other hand, manufacturers’ purchases accelerated but remained below average. For their part, firms lowered their one-year expectations for the third month in a row.