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)
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