Poland PMI July 2022

The S&P Global Manufacturing Purchasing Managers’ Index (PMI) stood at 42.1 in July, down from 44.4 in June. The index moved further below the 50 mark, signaling a more marked deterioration in trading conditions compared to the previous month.

Both production and new orders contracted sharply in July, weighed down by the contraction in internal and external demand, high inflation and uncertain economic prospects. Furthermore, employment fell for the second consecutive month. Both input costs and output prices continued to grow significantly. That said, the pace of growth in both input costs and the price of production was milder than in June. Finally, corporate sentiment for the future turned negative, dropping to its lowest level since April 2020, affected by growing concerns about an impending recession.

Commenting on the latest survey results, S&P Global analyst Paul Smith said:

“Poland’s manufacturing sector suffered a worrying deterioration in performance in July. We should have no illusions about the extent and speed at which the recession is occurring: the index numbers we are seeing for both manufacturing and new orders were only beaten in the negative during times of extreme stress (the global financial crisis and the pandemic). “

FocusEconomics speakers predict that fixed investment will increase by 6.2% in 2022, a decrease of 0.5 percentage points from last month’s forecast. For 2023, the panel expects fixed investment growth of 6.3%.