WARSAW (Reuters) - The decline in Polish manufacturing activity continued in January, with firms cutting staff at fastest rate in over ten years.
The IHS Markit Purchasing Managers’ Index (PMI) for manufacturing fell to 47.4 from 48.0 in December and remained below the 50.0 line that separates growth from contraction. The reading was below the consensus forecast of 48.3 in a Reuters poll.
With new orders continuing to decline, Polish manufacturers cut both staff and purchasing, with employment in the sector falling at the quickest rate since October 2009.
“The downturn in Poland’s manufacturing economy showed little sign of ending in January. Worryingly, the headline PMI went into reverse following some upward momentum at the end of 2019,” said Trevor Balchin, Economics Director at IHS Markit, which compiles the Poland Manufacturing PMI survey.
“Data on new orders and future output were more encouraging, with the respective indices rising to five- and eight-month highs. This could reflect a slowing manufacturing downturn in Germany.”
Reporting by Alan Charlish; Editing by Toby Chopra