Polish PMI weakest since May 2020
Poland’s Purchasing Managers’ Index (PMI) slid to its lowest level since May 2020 as manufacturing lost more momentum last month due to market instability driven by the war in Ukraine, according to business information provider S&P Global.
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The international financial services company reported on Monday that the Polish PMI declined to a more than two-year low of 42.1 in July, down from 44.4 in June.
„Operating conditions in Poland’s manufacturing sector deteriorated considerably during July,” S&P Global said.
It added that output and new orders fell sharply „as high inflation and an uncertain economic climate weighed on demand,” while firms „cut staffing levels on average for a second month in a row.”
Paul Smith, economics director at S&P Global Market Intelligence, was cited as saying that Poland’s manufacturing sector „experienced a worryingly sharp deterioration in performance during July.”
He added that firms and their clients were „understandably growing worried about recession, with high inflation and geopolitical uncertainty, especially in relation to Ukraine, leading to much hesitancy within the European marketplace.”
Poland’s PMI in April 2020 fell to its lowest level on record amid virus fears, sinking to 31.9 from 42.4 a month earlier at the height of the COVID-19 crisis.
The PMI is a composite indicator of manufacturing performance evaluated on the basis of new orders, output, employment, suppliers’ delivery times and stocks of purchases.
Any figure greater than 50 indicates overall improvement of the sector.
Source: PAP, pmi.spglobal.com