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English Section

Polish PMI rebounds as virus curbs eased

01.07.2020 10:45
Poland’s Purchasing Managers' Index (PMI) has bounced back from a record low amid the coronavirus pandemic, rising to 47.2 in June from 40.6 in May, according to Markit, a UK-based provider of financial information services.
Pixabay License
Pixabay LicenseImage by Gerd Altmann from Pixabay

The latest reading marked a second straight month of recovery for Polish manufacturers after a severe plunge at the height of the COVID-19 crisis.

The new data "indicated that the manufacturing sector remained stuck in contraction in June, but showed signs of recovery as lockdown measures began to be lifted," the British market researcher said on Wednesday.

It added that indicators for output and new orders "both rose sharply to levels seen before the coronavirus crisis erupted in March, but remained inside negative territory, as has been the case since late-2018."

Economics Director Trevor Balchin was cited as saying: "The Polish PMI made further strides toward the 50.0 stabilisation mark in June, but manufacturing conditions remain challenging even as the sector moves past the worst phase of the lockdown."

Balchin added, as quoted on the markiteconomics.com website: "All the key indicators showed notably slower falls in June, and output expectations turned decisively positive, albeit at a weaker level than the pre-crisis trend."

Poland’s PMI in April fell to its lowest level on record amid virus fears, sinking to 31.9 from 42.4 in March, according to the British market researcher.

A neutral PMI reading of 50 means that businesspeople in a country feel the economy will not change over the coming month.

A higher figure means the economy is expected to improve, while a PMI reading below 50 indicates that many think it will deteriorate.

Poland’s president last month signed a bill to protect companies, jobs, borrowers and local governments from the fallout of the COVID-19 pandemic.

The measure, dubbed “Anti-Crisis Shield 4.0,” marks the latest part of the government’s extensive relief and stimulus package aiming to shore up the economy and shield it from the impact of the coronavirus.


Source: PAP, markiteconomics.com