Published by Global Banking & Finance Review®
Posted on September 1, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GooglePoland's manufacturing sector contracted in August with a PMI of 46.6, indicating ongoing challenges despite slight improvements in future output expectations.
WARSAW (Reuters) -Poland's manufacturing sector contracted further in August, marked by ongoing declines in output and new orders, though the pace of deterioration eased slightly, a survey reported on Friday.
The Poland Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 46.6 in August from 45.9 in July, remaining below the 50.0 threshold that separates growth from contraction. This marks the index's second consecutive monthly increase but still reflects a challenging environment for manufacturers.
Analysts polled by Reuters had expected a slightly higher PMI reading of 46.8 for August.
New orders fell for the fifth consecutive month, albeit at a slower rate than in previous months. Export demand continued to weaken, particularly from U.S. and European markets, contributing to the overall decline in new business.
Despite the downturn, the outlook for future production improved, with the future output index reaching its highest point since March. Confidence among manufacturers was buoyed by expectations of recovering European markets, new products and investment in sales teams.
Employment in the sector saw its sharpest decline since May, however, as firms continued to reduce staff in response to a lack of incoming new work as backlogs shrank. Input prices fell for the second time in three months, while output prices were raised slightly.
"Operating conditions at Polish manufacturers continued to worsen in August," said Trevor Balchin, Economics Director at S&P Global Market Intelligence. "The main positive from the latest survey was a further recovery in the forward-looking future output sub-index."
The PMI data highlights ongoing challenges for Poland's manufacturing sector, though signs of a potential recovery in future output provide some optimism.
(Reporting by Karol Badohal; Editing by Toby Chopra)
The Poland Manufacturing Purchasing Managers' Index (PMI) rose to 46.6 in August from 45.9 in July, remaining below the 50.0 threshold that indicates growth.
New orders fell for the fifth consecutive month, although at a slower rate than in previous months, indicating ongoing challenges in the sector.
Despite the downturn, the outlook for future production improved, with the future output index reaching its highest point since March, suggesting potential recovery.
Employment in the manufacturing sector saw its sharpest decline since May, as firms reduced staff in response to a lack of incoming new work.
Analysts polled by Reuters had expected a slightly higher PMI reading of 46.8 for August, indicating a more optimistic outlook than what was reported.
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