Poland: Manufacturing PMI rises in July but remains below threshold
The S&P Global Poland Manufacturing Purchasing Managers’ Index (PMI) rose to 47.3 in July from 45.0 in June. As a result, the index remained below the 50.0 no-change threshold but signaled a softer deterioration in manufacturing-sector operating conditions compared to the previous month.
July’s uptick stemmed from slowing contractions in new orders, output, exports and purchasing. Moreover, although employment continued to fall, mainly reflecting the non-replacement of retirees and the release of temporary staff, the decline was among the weakest in the last 26 months. Additionally, the rate of contraction in purchasing activity slowed sharply due to firms boosting purchases in expectation of higher raw material prices ahead.
Inflationary pressures in the goods-producing sector remained subdued in July. Moreover, business sentiment regarding the 12-month outlook for production remained positive, driven by expectations of new customers, product launches and an overall economic improvement.