PMI inches down again

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Poland’s Manufacturing PMI remains below the neutral level of 50, signaling a deterioration of conditions in the manufacturing sector, according to a news release from HSBC and Markit Economics. In August, the index inched down to 49 points from 49.1 in July.

New orders fell for the third consecutive month and caused the first drop in output since June 2013, the release said. Job creation was maintained at a marginal rate.

Inflationary pressures were weak and input prices rose only slightly, while prices for manufactured goods declined for the twenty first consecutive month.

“On balance this is a negative survey pointing to extended weakness in the manufacturing sector and weak inflationary pressure,” said Agata Urbańska-Giner, CEE economist at HSBC.

“The [Monetary Policy Council] will most likely debate policy easing in September and while it is a close call a rate cut before the end of the year is very likely,” she added.

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