Polish manufacturing sector shrinks on Ukraine war hit -PMI
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WARSAW, June 1 (Reuters) – Poland’s manufacturing sector contracted for the first time in almost two years in May, a survey showed on Wednesday, as supply-side delays, high inflation and market instability linked to the war in Ukraine led to a sharp drop in output and orders.
S&P Global Poland’s Manufacturing Purchasing Managers’ Index (PMI) fell to 48.5 in May from 52.4 in April, below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 52.0.
“May’s survey highlighted the continuation of the themes seen in recent surveys, namely around high inflation – especially for fuel/energy costs – and the market instabilities caused by the war in Ukraine,” said Paul Smith, Economics Director at S&P Global Market Intelligence.
“These factors, and the uncertainty they continue to bring, led to a noticeable drop off in sales and demand for Polish manufactured goods, and in turn a sharp reduction in production.”
Manufacturing production and new orders declined at the fastest rate in two years as a result of unstable market conditions linked to soaring inflation and the Ukraine war.
Confidence in future production levels softened, but remained in positive territory. Employment in the sector grew for a sixth successive month, but the rate of growth was modest.
(Reporting by Alan Charlish; Editing by Catherine Evans)
