Poland: Manufacturing sector moves further into contractionary territory in June
July 1, 2019
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, edged down to 48.4 points in June (May: 48.8 points). The index thus remained below the 50-point threshold that separates contraction from expansion in the manufacturing sector, where it has been since November 2018.
June’s reading reflected steeper falls in output and new orders. Both were weighed down by weakness in domestic demand, while external demand also contracted, but at the softest pace in seven months. Moreover, inventories continued to pile up, and backlogs of work fell again, and at a sharper pace than in May, also thanks to an increase in employment. Meanwhile, firms’ production outlook gloomed and was the weakest since the end of 2012. Lastly, input inflation was the slowest since October 2016, which led output prices to rise at the slowest pace in over two-and-a-half years.
Commenting on the release, Trevor Balchin, Director at IHS Markit, added:
“Although the PMI sank to a four-month low in the latest period, the average for the second quarter rose slightly compared to the first quarter. But this will provide little solace for manufacturers, who were the least confident regarding 12-month output expectations for six-and-a-half years.”