The PMI index for industry in Poland in January 2024 was 47.1 points. compared to 47.4 points in December 2023 – S&P Global reported on Thursday.
“The weakening is the result of a significant decline in foreign orders and an extension of delivery times,” said Dawid Sułkowski, an analyst from the macroeconomics team of the Polish Economic Institute. He noted that the index has been below 50 points for over a year and a half – which suggests a contraction in activity.
He pointed out that the mood of entrepreneurs has improved in Western Europe. In January, the PMI in the euro zone increased from 44.4 to 46.6 points, and in Germany from 43.3 to 45.4. The PIE analyst estimated that one of the problems of Polish companies is demand from abroad.
“The value of new orders remains low – it fell by 10.6% in December. y/y. Enterprises are facing weak foreign demand. This is the result of the economic slowdown in the main trading partners. The value of new orders intended for export fell by 13% in December. y/y was the lowest in over two years,” the economist said.
He added that PMI data shows that companies are more optimistic about the future.
“The improvement in sentiment is related to the rebound in industrial production. Data without seasonal fluctuations indicate better results in the fourth quarter. In January, we will also see an increase in industrial production – we expect results close to 2.3%. y/y. Companies are optimistic about the prospects for 2024. The S&P comment indicates an improvement in forecasts for the next 12 months – they were the highest in nearly two years,” Sułkowski said.
