PMI inches down to 50.3

The June PMI reading reflects stagnation in the sector

Poland’s Manufacturing PMI is reflecting stagnation, with a reading of only 50.3 points in June compared to 50.8 points in May, according to a press release from HSBC and Markit Economics.

The indicator declined for the fourth consecutive month, but remained still slightly above the neutral level of 50.

A stagnation in new orders had the highest impact on the June PMI reading, the press release said. Growth of output was maintained, while manufacturing employment grew. The volume of new inputs contracted and input prices also fell.

“The PMI index points to a slowing GDP growth in the second quarter of this year,” said Agata Urbańska-Giner, CEE economist at HSBC. As for the H2 2014/2015 outlook, improving labor market, strong  investment performance in Q1 2014, recovering credit still suggest that the current weakness should not extend.”

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