Poland: PMI drops on softer manufacturing output in August
September 1, 2020
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) dropped to 50.6 in August from 52.8 in July, which had marked an over two-year high. However, despite the downturn, the index still remained above the 50-threshold, indicating improving conditions in the Polish manufacturing sector.
August’s print largely reflected a softer expansion in output among manufacturers compared to the previous month. Moreover, new orders were unchanged from July, as demand for Polish manufactured goods stagnated amid a muted domestic market and new virus cases in Europe. Meanwhile, firms continued to lower staff levels in August, albeit the rate of job shedding slowed. On the price front, input cost inflation rose to a six-month high in August, while output prices were lowered for the fifth month straight. Lastly, business sentiment weakened somewhat from July, reflecting worries over a second wave of coronavirus.
Author: Hanna Andersson, Economist