PMI down showing the weakening expansion of Polish industry

The Markit PMI Purchasing Managers' Index of the Polish industrial sector fell to 56 points in August 2021 from 57.6 points a month ago – Markit, a specialist economic research provider, said. The overall pace of expansion, although the weakest in four months, was one of the fastest in the history of the study (since 1998).

"According to the latest PMI data, the Polish manufacturing sector continued to grow rapidly in August. Growth in production, new orders, and purchasing activity, although slowing compared to the previous month, was still fast and manufacturers continued to hire new employees. Delays in chain deliveries continued to hold back production, causing an almost record increase in production backlogs. Poor supplier performance and the shortage of raw materials in the markets contributed to the increase in cost pressures, although the pace of inflation was the slowest since February," the release reads.

Manufacturing cost inflation remains high despite the weakest figure in six months, Markit said.

"In August, the pace of Polish industry expansion slowed again, yet overall economic conditions in the sector improved significantly again, with PMI reporting its fourth-highest figure since December 2010. Production and new orders grew at the slowest rate in four months and the pace at which new jobs were created work was the weakest since September 2020. Forecasts for the next 12 months, while still optimistic, were the worst in four months. Delays in deliveries continued to hamper production growth, which has still not caught up with the inflow of new orders. As a result, production backlogs have accumulated at an almost record pace, and the stocks of finished products have diminished even more," Trevor Balchin, IHS Markit economist, commented.  

The value of the index exceeding 50 points means an increase in industrial activity, and below this threshold – a decrease in the activity.

(ISBnews)