Poland‘s manufacturing sector saw business conditions continue to deteriorate in August, with output and new orders falling at faster rates, according to the latest S&P Global Poland Manufacturing PMI.
The index fell to 48.3 from 49.0 in July, remaining below the 50.0 threshold for a 16th consecutive month and indicating a deeper contraction in business conditions.
Worsening outlookm
“Poland’s manufacturing downturn worsened in August, with faster declines in output and new orders and a renewed drop in employment registered,” commented Trevor Balchin, economics director at S&P Global Market Intelligence.
“Having showed signs of easing in July, supply-chain pressure escalated with the latest survey showing the greatest lengthening in average lead times in over four years. This came despite a further drop in purchasing activity.”
As the data showed, new orders declined for the 17th consecutive month in August, with weaker demand partly attributed to slower activity in sectors such as construction, and increased import competition from mainland China.
New export orders also fell for a ninth consecutive month, although the decline was modest.
Employment fell again after increasing in July, which had been the first rise since April 2025. Companies linked workforce reductions to resignations, retirements, cost-cutting measures and lower production requirements resulting from weaker orders.
Elsewhere, manufacturers reduced their purchasing of inputs for the sixth time this year as weaker demand limited requirements. Despite lower purchasing activity, stocks of purchases increased for the first time in four months, reflecting the steeper decline in production.
Supply chain pressure
Supply-chain pressures intensified, with average supplier delivery times lengthening at their fastest rate since June 2022, while input price inflation accelerated for the first time in four months and remained above its long-run average.
“Reflecting supply-chain disruption and shortages, input price inflation rose for the first time in four months and further above its long-run average,” Balchin added. “Margin pressure was evident as output prices rose at a slower rate, as firms aimed to support sales despite rising costs.
“The only positive to take from the latest survey was a further improvement in the 12-month outlook for production, though expectations remained weak relative to the long-run trend.” Read more here.
