Polish manufacturing decline eases further in August, PMI shows
WARSAW, Sept 2 (Reuters) -Poland's manufacturing sector decline eased slightly in August, a survey showed on Monday, with drops in new orders, output and employment all smaller than in July and the 12-month outlook improving.
S&P Global's Polish manufacturing Purchasing Managers' Index (PMI) rose for a second month running to 47.8 in August from 47.3 in July. Still, it was the 28th month in a row that the reading has been below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 47.4.
"The Polish PMI rose to a five-month high in August, reflecting slower declines in output, new orders and jobs," said Trevor Balchin, Economics Director at S&P Global Market Intelligence.
"The headline figure remains some way from growth territory, but it compared favourably to the flash eurozone figure of 45.6, an eight-month low."
According to the survey, demand for Polish manufactured goods continued to weaken in August, with exports falling more than new orders and companies pointing to a weak European economy, particularly Germany. Both new orders and exports declined for a record 30th successive month.
PMI data showed Polish manufacturers lowering output for a survey-record 28th consecutive month, though as with new orders, the pace of decline eased.
Inflationary pressures stayed subdued in August, with both input costs and output prices falling at the fastest rate since last October and March respectively.
Polish manufacturers' confidence on the year ahead strengthened to a six-month high on hopes for new products, National Recovery Plan (NRP) funds from the European Union, new customers and an economic recovery in Germany to drive output growth.
Reporting by Karol Badohal; Editing by Hugh Lawson
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