WARSAW, March 1 (Reuters) - Poland's manufacturing
sector shrank again in February but showed signs of stabilising
as new orders declined at a slower pace and inflation pressures
eased, a survey showed on Wednesday.
S&P Global's Polish manufacturing Purchasing Managers' Index
(PMI) rose to 48.5 in February from 47.5 in January, but
remained below the 50.0 line that separates growth from
contraction. Analysts polled by Reuters had expected a reading
of 47.8.
"Although February indicated the continued contraction of
the Polish manufacturing economy, the latest PMI survey provided
some hope that the sector is heading towards stabilisation at
the very least in the coming months," said Paul Smith, economics
director at S&P Global Market Intelligence.
"Both new orders and production continued to decline, but
did so at slower rates, whilst cost inflation, which has been a
key feature of the downturn, shifted down noticeably to its
lowest level in over two-and-a-half years."
Input price inflation eased as firms lowered purchasing
activity, and the net rise was the lowest recorded by the survey
since July 2020. Meanwhile, output price inflation also fell,
due to reduced cost pressures and weaker market demand.
Business confidence reached a 10-month high, with
manufacturers pointing to hopes of increased stability and more
orders.
However, staffing levels continued to fall as firms chose
not to replace leavers in a business environment that is still
negatively affected by the war in Ukraine and inflation.
(Reporting by Alan Charlish; Editing by Susan Fenton)
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