Poland: PMI logs five-month high in December
January 4, 2021
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) climbed to 51.7 in December, from November’s 50.8 and marking the best reading since July. Consequently, the reading signaled an improvement in business conditions in the Polish manufacturing sector compared to the previous month.
December’s upturn largely came on the back of a rise in new orders amid improving demand conditions. In particular, export demand picked up, growing at the fastest clip in nearly three years due to stronger Asian and European demand. That said, output fell for the second month straight and at the quickest rate in six months, owing to staff shortages and supplier delays. On the price front, input cost inflation rose at the fastest pace since April 2011 amid raw material shortfalls, which also translated into higher output charges as firms passed on their costs to customers. Lastly, Polish firms were optimistic about the outlook for the coming twelve months, with sentiment rising to the strongest level since May 2018 and above the long-term average.
Author: Hanna Andersson, Economist