Sept Polish manufacturing operating conditions deteriorate: S&P Global

There were signs of recovery as the rates of decline in many variables eased since August and the 12-month outlook for production remained positive.

Inflationary pressures receded, with input and output prices both falling.

The headline S&P Global Poland manufacturing PMI remained below the 50 neutral threshold at 48 in September—up from 46.6 in August, indicating another overall deterioration in operating conditions at manufacturers.

Rising for the third month running to the highest since April, however, the headline figure signalled a further easing in the rate of decline.

The rise in the PMI since August was reflected in four of the five components, although all except suppliers' delivery times still had negative overall contributions.

New orders received by Polish manufacturers fell for the sixth month running in September. The rate of contraction slowed for the third month running, however, and was the weakest since May.

At the same time, new export orders fell overall for the sixth month running, albeit at the slowest rate in four months. Some firms noted recovering orders from European markets.

The sustained downturn in new orders translated into lower production levels in September. Output dropped for the fifth month running, although the rate of contraction was the softest over this sequence and only modest.

Employment was cut for the seventh time this year so far in September as production and new work fell further. The rate of job shedding was only marginal, a release from S&P Global Ratings said.

There were signs of returning pressure on capacity, as backlogs of work increased for only the second time in over three years.

Goods producers in Poland reduced their input buying for the fifth month running in September, but to the weakest degree over this period.

Similarly, stocks of purchases were cut for the sixth successive month, but at the slowest rate since April.

Suppliers' delivery times, meanwhile, lengthened only fractionally during September, indicating a lack of pressure on supply chains.

The 12-month outlook for production remained positive in September as the downturn in new work continued to ease.

Manufacturers linked growth forecasts to an economic recovery, new markets, National Recovery Plan funds and new products.

ALCHEMPro News Desk (DS)