Poland’s manufacturing sector deteriorated further in November, albeit at a slower pace, amid weaker declines in output and new orders, survey data from IHS Markit showed on Monday.
The manufacturing purchasing managers’ index, or PMI, rose to 46.7 in November from 45.6 in October. Any reading below 50 indicates contraction in the sector. The latest PMI reading was the second lowest since July 2009.
Output and new export orders declined at slower rates in November, though the rate of contraction was the quickest seen since mid-2009.
Backlogs of work decreased at a steeper rate, amid a lack of incoming new orders.
The number of workforce were trimmed due to easing capacity pressure. The rate of job cuts remained unchanged from the previous month.
Expectations towards output growth in a year’s time was the lowest since the beginning of 2012, reflecting a decline in demand and generally weaker economic forecasts.
On the price front, input price inflation was the weakest since September 2016 and average output charges increased marginally in November.
Both the pre- and post production inventories decreased during the month.
“Firms are becoming increasingly worried about the outlook, with business confidence towards future output dropping to a new record low for the third month in a row in November,” Phil Smith, principal economist at IHS Markit, said.