Polish manufacturers see sharper falls in production, orders in March -PMI

WARSAW, April 3 (Reuters) - Poland's manufacturing sector shrank in March and the decline in production and new orders accelerated, a survey showed on Monday, but nevertheless firms were more optimistic about the future due in part to falling inflation. S&P Global's Polish manufacturing Purchasing Managers' Index (PMI) fell slightly to 48.3 in March from 48.5 in February, remaining below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 48.2. "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." Manufacturing production fell for an eleventh straight month, with the pace of decline accelearting slightly compared to February. New orders fell for the thirteenth month in a row, amid weak demand both domestically and internationally. However, confidence in the future rose to its highest level since February 2022, as businesses said they expected improved supply-side conditions and a broader stabilisation in the economy. While firms continued to reduce staffing levels, the rate of job cuts was the slowest since July 2022. (Reporting by Alan Charlish; Editing by Toby Chopra)