Polish PMI hits fresh record high as rebound accelerates

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usiness conditions for Polish manufacturers improved at a record rate for the second consecutive month in June, a survey showed on Thursday, as new orders shot up, leading to unprecedented backlogs and inflationary pressures.

IHS Markit’s Purchasing Managers’ Index (PMI) for Poland rose to a new all-time high of 59.4 in June, topping the previous record of 57.2 which was set in May. Analysts polled by Reuters had expected a reading of 57.0.

The PMI has risen for six of the last seven months, as Polish manufacturing has rebounded strongly from the effects of the COVID-19 pandemic.

“The Polish PMI surged to a new record high … signalling a strong rebound in the goods-producing sector as lockdown restrictions were eased and pent-up demand released as more parts of the economy reopened,” said Trevor Balchin, economics director at IHS Markit.

Despite a sharp rise in production, backlogs grew at the fastest rate since 2003. In a bid to deal with the fastest rise in new orders since 2014, employers added to their workforces for the 10th month running.

Raw material shortages and transportation problems drove input and output prices to record highs as firms passed on higher costs to clients, the survey showed.