Polish manufacturing contraction accelerates in April - PMI

Kitco Media
By Reuters
Published:
Updated:
Reuters
WARSAW, May 2 (Reuters) - Conditions in the Polish manufacturing sector deteriorated in April, a survey showed, as a sharp decline in new orders led firms to cut production and jobs. S&P Global's Polish manufacturing Purchasing Managers' Index (PMI) fell to 46.6 in April from 48.3 in March, remaining below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 47.9. "Reading anecdotal evidence from panellists, high prices remained a continued challenge for clients, as did the generally uncertain business environment," said Paul Smith, Economics Director at S&P Global Market Intelligence. "Excess inventories are however having a beneficial impact of helping to push down on prices and leading to some supply-side stability." Output declined in April for the 12th consecutive month due to weak demand, reaching the sharpest rate of contraction so far this year. The lack of new orders meant that firms continued to cut jobs. Input prices fell for the first time in seven years, with respondents reporting that they were paying lower prices for a range of raw materials. Decreasing input prices along with weak demand and competition combined to push down their output prices as well. Respondents remained confident about the future, although less so than in the previous month as worries about inflation persisted. (Reporting by Alan Charlish; Editing by Hugh Lawson)

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