The Purchasing Managers' Index (PMI) in Poland fell 0.3 points in January to 47.1, according to the latest findings by S&P Global.

The reading falls short of the consensus, which forecast a 0.8-point rise to 48.2. This represents the 21st consecutive month the indicator has remained under the 50-mark, separating growth from contraction.

The decline in January prolongs the wait for a key recovery in the country's manufacturing sector, BNE IntelliNews reports.

"We estimate that the economic situation in the domestic industry is not as bad as the PMI would indicate, which is suggested by alternative indicators published by the (state statistical office) GUS and the European Commission, as well as the slowly emerging upward trend in seasonally adjusted industrial production," said PKO Bank Polski.

In addition, new orders edged down for the 23rd straight month in January, and at the fastest rate in three months, according to S&P Global research.

"Output, backlogs and purchasing also fell at quicker rates, while the Red Sea shipping crisis led to the worst lengthening in suppliers' delivery times since August 2022. Input prices continued to fall, however, reflecting weak overall demand for raw materials, which fed through to another reduction in output prices," S&P went on to add.

Furthermore, Poland's PPI index fell 6.4% year-on-year in December, following on from a revised decline of 5.1% year-on-year the month before, according to the latest GUS findings published in January.

Regarding Poland's employment, the rate fell only marginally last month, whilst the 12-month outlook for production was the most robust since February 2022, S&P Global added.

Moreover, according to the latest actual data from the country's industrial sector, output fell to -3.9% year-on-year in December following a revised increase of 0.3% year-on-year in November, the state statistical office showed.

GUS will publish data relating to January's industrial production and PPI in the second half of this month.