Poland's PMI hits 35-months low

Poland's purchasing managers' index PMI edged down to 48.0 pts in June from 48.9 pts in May, reaching its lowest levels in 35 months and recording third consecutive reading below 50 pt mark, a PMI report by HSBC showed. 

“The PMI index shows ongoing deterioration of the conditions in the manufacturing sector," HSBC's Agata Urbanska said in the report. "The gradual slide of the PMI index in the last three months highlights downside risks to growth in the manufacturing sector this year."

The volume of new business recorded sharp declines, output contraction deepened to levels last seen in mid-09, new export orders remained in the negative territory for the fourth time in the last five months, while backlogs of work fell for the thirteenth consecutive month at a pace not seen since June 2009, HSBC analysts said.

Falling orders were the cause of weakening business climate in the second quarter, HSBC analysts said, with firms "cutting output and purchases of new inputs, but expanding workforces on average," the report reads.

The "mild" rise in employment was the sole positive finding.

Poland's PMI highest in six years

Poland's manufacturing Purchasing Manager's Index score for October rose to 55.6 points from 54.7 points a month earlier.

Poland's latest PMI is the highest the country has recorded in six-and-a-half years.

The PMI – produced by HSBC and Markit – reflects the percentage of purchasing managers in a specific economic sector who reported an improvement in operating conditions on the previous month.

A PMI above 50 suggests overall improvement in the business climate, while anything below suggests a contraction.

Poland's PMI result for October came as a big surprise as analysts had actually expected to see it drop on the previous month.

Markit analysts' predictions had been that Poland's PMI would fall in October to 53.8 points from the September result of 54.7.

Poland's PMI has remained above the 50 mark for every month over the last 12 months.