Poland’s Purchasing Managers’ Index (PMI) fell to 48.5 points in May from 52.0 points in April, economic researcher S&P Global reported on June 1.
Economists polled by PAP predicted the PMI would reach 52.0 points in May.
According to S&P Global, the reasons for the decline included the war in Ukraine and inflationary pressures.
The surveyed companies said that market volatility resulting from the war in Ukraine and soaring inflation hampered sales at home and abroad.
“New export orders fell for the third month in a row, and companies reported lower demand from their key EU markets,” the report read.
Cost inflation remained high in May, with companies transferring a marked part of higher prices of finished goods onto clients. Commodities, energy and fuels proved more expensive again, according to the respondents.
“The operating conditions deteriorated for the first time in nearly two years due to significant drops in both production and new orders,” S&P Global wrote and added that “both indicators recorded the fastest pace of decline in two years.”
May was another challenging month for entrepreneurs from the Polish manufacturing sector due to delays in deliveries, high inflation and the unstable market, the report added.
The confidence of producers was at its lowest level since October 2020, the report also said.
The headline PMI is a composite single-figure indicator of manufacturing performance derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.
A PMI above 50 represents an expansion in manufacturing when compared to the previous month, while under 50 indicates a contraction. (The First News/Business World Magazine)