The Markit PMI Purchasing Managers’ Index of the Polish industrial sector rose to 53.8 points in October 2021 from 53.4 points recorded a month ago, Markit, a specialist economic research provider, said. Price pressures also intensified, with firms pointing out that poor commodity availability and strong global demand were fueling spike in inflation.
The market consensus was 53 points.
The IHS Markit PMI Polish Industrial Sector – a complex index reflecting the condition of the industry, calculated on the basis of five sub-indices: new orders, production, employment, delivery times and inventories of purchased items – remained well above the neutral threshold of 50 in October, prolonging the current continuous upward trend Moreover, the main PMI rose from September’s level of 53.4 to 53.8, signaling an acceleration of growth in the sector. The pace of expansion, however, was much weaker than the results recorded in the summer (including the historical record in June), it was announced.
Production and new orders are rising slightly, Markit pointed out.
“Growth in the Polish manufacturing sector continued in October, and the pace of expansion was well above average. However, given the trends observed for the sub-indices that make up the main indicator, some results may be worrying. First of all, the pace of production growth and new orders was very weak. As long as we are faced with such handicaps – and the longer they persist, the more difficult it will be to call them “temporary” – the probability that the period of low growth and high inflation will last longer will increase. These fears still weigh on the business optimism of Polish producers, although overall the forecasts are still positive,” according to IHS economist Markit Paul Smith.
The value of the index exceeding 50 points means an increase in industrial activity, and below this threshold – a decrease in activity.
Source: IHS Markit and ISBnews
