The Polish manufacturing sector slowed in August with output and new orders showing only slight growth, according to new statistics released by Markit Economics today. The sector’s PMI reading dropped to 51.1 in August from 54.5 the previous month. A figure of 50 would indicate contraction in the sector. The news follows a series of weaker-than-expected macroeconomic data, which, could lead to interest rate cuts.
Markit Economics, which compiles the data, wrote that Poland’s economy was exhibiting signs of weakness of several fronts. “Growth rates for output, new orders and exports all slowed sharply during the latest period, to weak levels in all three cases,” it wrote in its most recent report. “Firms cut purchasing activity, and backlogs of work fell sharply. There was a lack of inflationary pressure during the month, with input prices barely rising since July and a resumption of the recent downward trend in prices charged for finished manufactured goods.”
