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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