Poland Manufacturing Downturn Eases in July as Factory Jobs Rise, PMI Shows
Key Insights from July's Manufacturing PMI Report
Overview of July Manufacturing Activity
WARSAW, Aug 3 (Reuters) - Poland's manufacturing downturn eased sharply in July as declines in output and new orders slowed and employment rose for the first time since April 2025, a business survey showed on Monday.
PMI Figures and Analyst Expectations
• The S&P Global Poland Manufacturing Purchasing Managers' Index (PMI) rose to 49.0 in July from 46.1 in June, a survey by S&P Global showed. The 50-mark separates growth from contraction.
• Analysts polled by Reuters had expected a reading of 47.5.
Expert Commentary
• "The PMI regained most of the ground lost in June at the start of the second half of the year, mainly reflecting slower declines in output and new orders and a rare increase in employment," said Trevor Balchin, Economics Director at S&P Global Market Intelligence.
Detailed Sector Performance
Output and New Orders
• Output fell for a second straight month in July, but the decline was much softer than in June and only modest overall. New orders also dropped, extending a downturn that began in April 2025, though the pace of contraction slowed notably.
Export Demand
• Overseas demand remained weak, with new export orders falling for an eighth consecutive month. Still, the rate of decline was the slowest since January, S&P Global said.
Employment and Inventory Trends
• Manufacturers increased headcount for the first time in 15 months, although the pace of job creation was only marginal. Backlogs of work fell for a sixth month running and stocks of finished goods contracted at the fastest rate in three months.
Price Pressures and Inflation
• Price pressures eased further. Input costs rose for a ninth month, but inflation slowed to a five-month low, while output prices increased for a fifth straight month at the weakest rate since March.
Outlook and Future Expectations
• Firms grew slightly less downbeat about the year-ahead outlook after June's slump, with expectations linked to anticipated orders, new projects and government and EU support programmes. Even so, the Future Output Index remained below its long-run trend level.
(Reporting by Reuters; Editing by Toby Chopra)
