Poland: Manufacturing sector entrenched in contractionary terrain in February
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, ticked up to a six-month high of 48.2 in February from January’s 47.4. The index nonetheless remained entrenched below the 50-threshold, where it has been since November 2018, signaling another deterioration in the manufacturing sector.
February’s less marked contraction mainly reflected longer supplier delivery times. Meanwhile, both orders and output fell at rates similar to the ones registered in January, while the decline in workforce was the second-fastest in close to seven years. Moreover, businesses’ expectations softened on faltering new orders and concerns about the effect of coronavirus on supply chains; however, the 12-month outlook remained positive. On the price front, input price inflation came in at the fastest in over a year, which led output prices to increase at a faster pace than in the previous month.
Commenting on the release, Trevor Balchin, economics director at IHS Markit, stated:
“Although the PMI rose to a six-month high, this mainly reflected the impact of longer suppliers’ delivery times, the index for which is inverted for the calculation of the headline figure and carries a 15% weight. The new orders and output components, with a combined 55% weight, were only fractionally higher than in January and still below 50.”