Top Stories
Polish manufacturing gloom deepens as Ukraine war weighs -PMI
Global Banking & Finance Review®
Company
WARSAW (Reuters) – The Polish manufacturing sector contracted in June, a survey showed on Friday, with the war in Ukraine and a related surge in inflation leading to fewer orders, shrinking production and job losses.
WARSAW (Reuters) – The Polish manufacturing sector contracted in June, a survey showed on Friday, with the war in Ukraine and a related surge in inflation leading to fewer orders, shrinking production and job losses.
S&P Global’s Polish Manufacturing Purchasing Managers’ Index (PMI) fell to 44.4 in June from 48.5 in May, remaining below the 50.0 line that separates growth from contraction for a second month. Analysts polled by Reuters had expected a reading of 48.0.
“The latest survey highlighted breath-taking downturns in orders and output, with rates of decline unheard of outside of the pandemic-related shutdowns of 2020 and the height of the global financial crisis in 2008,” Paul Smith, economics director at S&P Global Market Intelligence said.
“This highlights a rapid loss of momentum in the sector and unsurprisingly is leading firms to slim down operations as confidence about the future sinks.”
Business confidence fell to its lowest level since the height of the first COVID-19 wave in 2020, as managers fretted over high inflation, the war in Ukraine and a lack of new orders.
Input costs kept climbing as a result of high energy prices, shortages of goods and transport problems. This in turn weighed on new orders, which fell for the fourth consecutive month.
Employment declined for the first time since November 2021, as mounting cost pressures meant firms did not replace leavers and made some staff redundant.
(Reporting by Alan Charlish; Editing by Susan Fenton)
PMI stands for Purchasing Managers' Index, a measure of the prevailing direction of economic trends in manufacturing and service sectors.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
A contraction in manufacturing refers to a decline in production levels, often indicated by a PMI reading below 50.
Business confidence is the degree of optimism that business leaders feel about the overall economic situation and their own company's prospects.
Explore more articles in the Top Stories category
