Poland’s Purchasing Managers’ Index (PMI) fell to 42.1 points in July from 44.4 points in June, economic researcher S&P Global reported on August 1.
Economists polled by PAP predicted the PMI would reach 43.7 points in July.
The July reading was the lowest since May 2020.
High inflation and lower demand resulting from poor economic sentiment caused a rapid decline in production and new orders, S&P Global said.
Companies reduced the number of employees for a second month in a row and the business optimism of Polish producers was the lowest since 2020, the researcher added.
Price pressures increased while production costs and prices of finished goods continued to rise at a very high pace, according to S&P Global.
The lower index reading reflected a strong decline in manufacturing and new orders. In both cases, the rate of decline was the fastest since the peak of the coronavirus crisis of 2020.
Sales to foreign markets declined at a similar rate as new orders and companies reported unexpected and concerning slowdown in European business activity, S&P Global 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, a reading under 50 indicates a contraction. (The First News/Business World Magazine)
