Poland's manufacturing PMI down m/m in June

Poland's Purchasing Managers' Index (PMI) fell to 44.4 points in June 2022 from 48.5 points in May, economic researcher S&P Global reported on Wednesday.

Economists polled by PAP predicted the PMI would reach 48.0 points in June.

The June reading was the lowest in 25 months.

S&P Global said high inflation and growing geopolitical tensions dampened new orders and, consequently, industrial production.

Business optimism plunged to its lowest level since the outbreak of the coronavirus pandemic in 2020, the researcher added.

High energy and commodity costs added to the price pressures, but a slowdown in the growth pace of production costs and the prices of finished goods indicate that some of the the pressure has eased.

The low PMI reading reflected a decline in manufacturing and new orders, both of which were strong in the context of historical data.

According to S&P Global, bigger drops were seen only at the height of the financial crisis of 2007-2008 and during the coronavirus pandemic.

The headline PMI is a composite single-figure indicator of manufacturing performance derived from indicators for new orders, output, employment, suppliers' delivery times and stocks of purchases.

A PMI above 50 represents an expansion in manufacturing when compared to the previous month, a reading under 50 indicates a contraction.