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Financial News: Poland Factory Growth Remains Strong In August

Poland Factory Growth Remains Strong In August

09/01/2017 - 08:04:00 (RTTNews)

(RTTNews) - Poland's manufacturing activity continued to expand strongly in August, survey data from IHS Markit showed Friday.

The headline Purchasing Managers' Index, or PMI, rose to 52.5 in August from 52.3 in July. Any reading above 50 indicates expansion in the sector.

The latest general improvement in operating conditions was partly driven by expansions in output and new orders.

Backlogs of work rose for the first time since February 2015. Firms noted both shortages of labor and supply constraints as potential causes.

The rate of job creation across the manufacturing sector was only slight overall and matched the 34-month low recorded in June.

On the price front, input price pressures increased further in August, driven by higher raw material prices. As a result, manufacturers raised their output charges at a marked rate.

"Business optimism remained strongly positive, signalling that firms generally anticipate improving business conditions in Poland over the next year," Sam Teague, economist at IHS Markit, said.

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