Poland's Purchasing Managers' Index (PMI) held steady at 45 in June, according to the economic intelligence company S&P Global's report published on 1st July.
The reading slightly exceeded expectations, as consensus had anticipated a decline of 0.1 points to 44.9.
This marks the 26th consecutive month that the indicator has stayed below the 50-point threshold, which separates contraction from growth. This ongoing trend is the longest since the survey's inception in 1998.
“Sharp declines were indicated for production, new orders, exports and employment while purchasing activity fell for a record 25th month running,” S&P Global stated.
“Weak demand was accompanied by a lack of inflationary pressure, as both input and output prices fell slightly since May,” the index’s compiler went on to add.
The June reading further extends the period of waiting for a sustained recovery in Poland's manufacturing sector, which seems to be trailing behind the trends seen in the eurozone countries, Poland's primary trade partners, BNE Intellinews reports.
“The main source of weak foreign demand was Germany, where the PMI index in manufacturing decreased in June – similarly to France and the entire Eurozone,” PKO Bank Polski said.
“We expect activity in manufacturing to improve due to the continued recovery in domestic consumer demand and an increase in export orders, although we may have to wait a bit longer for the latter condition to become reality,” the bank added.
Furthermore, data for June from Poland's industrial sector, including production and the Producer Price Index (PPI), will be published by the statistical office GUS in late July.
Poland's industrial sector, encompassing manufacturing, energy production, mining and quarrying, as well as water and waste management, contracted in May according to the latest available data.
Moreover, according to GUS, Poland's industrial output declined by 1.7% year-on-year in May, following a 7.8% year-on-year increase in April.
Additionally, the producer price index fell by 7% year-on-year in May, following a revised decline of 8.5% year-on-year the month before.