(Reuters) -Poland’s manufacturing sector continued to contract sharply in July, although the pace of decline eased slightly compared to June, a survey showed on Friday.
The S&P Global Poland Manufacturing PMI registered 45.9 in July, up from 44.8 in June, indicating a marked deterioration in business conditions, S&P Global reported. The July result was in line with a Reuters poll forecast.
PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction. Despite the slight improvement, July’s PMI was the second-strongest contraction since mid-2024, reflecting ongoing challenges for Polish manufacturers.
New orders fell for the fourth consecutive month, although the rate of contraction eased since June. Export orders were particularly weak, declining at the steepest rate since August 2023, with Germany often cited as a source of weakness.
Employment in the sector was cut for the fifth time in 2025, although the rate of job shedding cooled compared to previous months. Manufacturers also reduced input buying at the fastest pace since October 2023, leading to a further decrease in input stocks.
“Poland’s manufacturers reported a further marked deterioration in operating conditions in July,” said Trevor Balchin, Economics Director at S&P Global Market Intelligence.
Despite the downturn, output expectations for the next 12 months showed some recovery, with nearly one-third of firms anticipating growth, up from 24% in June. However, optimism remained subdued, with U.S. tariffs and competition from Asia posing threats to sales.
“The July data did at least suggest the worst of the current downturn may have passed, however, with slower declines in output, new orders and jobs, with the 12-month outlook rebounding,” said Balchin.
(Reporting by Reuters; Editing by Toby Chopra)
