The result of 50 points is an important barrier that separates the expansion (readings above this border) from the recession (below) in the sector. It is important not only whether it is below this border level, but an important hint is also whether there is a change: the growing PMI indicator, even if it is below 50 points, suggests improvement in the sector.
According to the latest PMI data collected by S&P Global, economic conditions in the Polish manufacturing sector improved in April the third month in a row. However, there were warning signals that the current improvement is fragile, because new orders have dropped, and prospects for 12 months have weakened rapidly. The production costs and prices of finished products have increased again, but at a relatively poor pace.
The indicator has remained above the neutral threshold of 50.0 third month in a row. The index fell in April from the March level of 50.7 to 50.2, signaling the persistent overall improvement in business conditions in industry. The general pace of expansion, supported by the increase in production and employment, was in line with the long -term average. On the other hand, under the general conditions of conducting business, a small decrease in new orders, a lower level of purchased items and faster delivery times.
Production increased in April had the most positive impact on the conditions in the sector. Production increased the third month in a row, in addition at the fastest pace since February 2022.
In April, the level of employment also increased (the fifth increase over the past seven months). Companies employed new employees to meet current burdens, because production arrears increased for the first time in almost three years.
Manufacturers bought more materials in April than in the previous month to meet the production requirements. Although the level of shopping rose to the second month in a row, faster production increase meant that the stocks of purchased items fell. Delivery times slightly accelerated for the first time since June last year.
