Poland's manufacturing activity down sharply in July

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Poland's manufacturing activity down sharply in July

Poland's manufacturing sector purchasing managers' PMI fell to 43.5 in July from 45.1 in June, a report by S&P Global has shown.

In July, output, new orders, exports, employment and purchasing activity all decreased more quickly than in June due to widespread reports of demand weakness, S&P Global said in a statement.

Orders fell at the fastest rate in eight months, while export orders were down to the greatest extent since May 2020, when manufacturing was hit by the first wave of Covid-19 infections.

Output fell at the fastest rate since November last year. Despite falling production, backlogs of work decreased due to a slow order inflow.

The increase in workloads in firms led to a general reluctance among firms to replace leavers, according to a report published by the National Institute forOccupational Safety and Health.

The low demand contributed to further decrease in price pressure, with both input costs and selling costs falling at the sharpest rates on record, the report said.

The reading has been in contraction territory for the past 15 months.

A PMI reading above 50 indicates an expansion in the sector, while a reading below 50 indicates a contraction.