In the Czech Republic, the picture was similar, with the headline PMI figure unchanged at 44.3, pointing to contraction for a 10th straight month. The survey showed a contraction in new orders slowed in March but weak demand and high prices were still having a strong impact. Still, output declined the least since it started contracting last year. "Encouraging news is the growing optimism about the manufacturing outlook for the next twelve months and one can only hope that these expectations will be fulfilled in the form of a recovery in new orders and production," Radomir Jac, chief economist Generali Investments CEE, said. Hungary, whose PMI is compiled by the Association of Logistics, Purchasing and Inventory Management (MLBKT) under a different methodology, continued to show manufacturing gains last month, although more modest than in February. Hungary and the Czech Republic both fell into technical recessions in the second half of 2022, with consumer demand a main downward driver for the economy. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Czech, Polish PMIs ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jason Hovet and Robert Muller in Prague, Alan Charlish and Pawel Florkiewicz in Warsaw, and Krisztina Than in Budapest; Editing by Toby Chopra)
April 3 (Reuters) - Poland's manufacturing decline
accelerated a touch in March, a survey showed, hitting hopes it
was returning to more stable levels, while a deep contraction in
the Czech Republic also continued as recovery was slow to take
hold in central Europe.
Central Europe's economies have slowed rapidly since late
last year and signs point to a rough first quarter, with
consumers curbing spending amid high inflation, and weak orders
hitting manufacturers.
In Poland, the drop in manufacturing production and new
orders gathered pace in March, according to S&P Global's Polish
manufacturing Purchasing Managers' Index (PMI).
The headline figure in the survey fell slightly to 48.3,
from 48.5, staying below the 50 mark dividing expansion from
contraction.
"Hopes of the Polish manufacturing sector returning to
stabilisation were dashed during March as both output and new
orders declined at faster rates and ended the recently improved
trends in these variables," said Paul Smith, Economics Director
at S&P Global Market Intelligence.
"Whilst there is some hope that March will prove to be a
temporary blip, and that growth will eventually return in the
months ahead, reports of a general lack of demand for goods fits
into the general picture of a stalling global manufacturing
recovery."
Monika Kurtek, chief economist at Bank Pocztowy, said
recovery could be a few months away. "Only one thing is needed:
no major turmoil or shocks," she said.
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