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Financial News: Poland Factory Activity Remains In Contraction

Poland Factory Activity Remains In Contraction

01/02/2025 - 08:26:00 (RTTNews)

(RTTNews) - Poland's manufacturing activity continued its downward trend at the end of the year amid steeper declines in output and stocks of purchases, survey data from S&P Global showed on Thursday.

The manufacturing purchasing managers' index, or PMI, dropped to 48.2 in December from 48.9 in November. A PMI reading below 50 suggests contraction in the sector.

Moreover, this was the strongest deterioration in manufacturing business conditions since last August.

New orders showed a further decline in December, though the pace of contraction was the slowest since November 2023. Foreign demand was also not favorable as new export orders fell at the fastest rate in three months, with Germany again highlighted as a source of weakness.

Meanwhile, output fell at the steepest pace since August, and stocks of finished goods fell for the third month.

Looking ahead, business confidence rebounded from November's recent low. Firms reported expectations of an economic recovery, export growth, utilization of NRP funds, and the acquisition of new clients.

The improved outlook was reflected in a further increase in manufacturing employment in December.

On the price front, input prices fell for the seventh straight month, and ongoing price competition and lower raw material prices, including metals, chemicals, and plastics, lifted selling prices further.

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