The international financial services company reported on Monday that the Polish PMI dropped to 45.1 in June, from 47 in May, signalling a downturn in the goods-producing sector for the 14th successive month and the worst overall performance since November 2022.
"Polish manufacturing business conditions deteriorated sharply in June, with marked falls in output, new orders and purchasing accompanied by another round of job shedding," S&P Global said.
"The declines in demand and production were the steepest seen in 2023 so far," it added.
Paul Smith, economics director at S&P Global Market Intelligence, was cited as saying that "Poland's manufacturing downturn worsened in June as the sector remained exposed to weak European markets, especially Germany."
He added that output, new orders and purchasing "all fell at faster rates in June, while jobs were cut further."
More positively, reduced demand and improving supply chains "depressed prices further in June," Smith said, adding that "a fresh record decline in output prices," combined with a fast drop in input prices, bode well for inflation in Poland in the second half of the year and offered hopes of a recovery in demand.
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.
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Source: PAP, pmi.spglobal.com