The manager’s purchasing index (PMI), long-viewed as a harbinger of overall economic output in a region, was down by 2 percentage points in October compared to the previous month, according to research group Markit. Although the rate remained above the threshold of declining activity, at 50.2, there is concern that it may be a sign of a weakening economy in Poland. Activity declined for the third consecutive month.
Production volume, which actually increased slightly during the month, was low enough to be considered indicative of stagnation, according Markit’s press release. The general slowdown reflects lower purchasing activity and a decline in industrial production over the previous month. “The latest data…represents another threat to the (previous) forecasts of expansion of Polish industry,” said IHS senior economist at Markit and author of the report, Trevor Balchin.
The PMI is based on monthly surveys of managers of private sector companies, in which the purchasing managers are asked to report positively or negatively on factors such as new export orders, production levels, inventories and employment. A rate below 50 indicates a slowdown in economic activity.