FX.co ★ Polish Manufacturing Downturn Unexpectedly Deepens

Poland’s S&P Global Manufacturing PMI slipped to 47.1 in February 2026 from 48.8 in January, coming in below the consensus forecast of 49.2 and indicating the sharpest deterioration in operating conditions since August 2025. New orders fell at their fastest pace in seven months, accompanied by renewed declines in both employment and purchasing activity. Output contracted for a tenth consecutive month, although the rate of decline eased to its slowest since November. Export orders also weakened further, but the downturn there remained relatively mild. Persistent falls in backlogs of work prompted firms to reduce headcounts at the quickest pace since May 2024. At the same time, input cost inflation accelerated sharply to a 37‑month high, driven mainly by higher raw material prices, especially for metals and wood products. However, subdued demand continued to constrain manufacturers’ ability to pass on these higher costs through selling prices. Despite the challenging conditions, business sentiment stayed positive, underpinned by expectations of improving economic conditions and stronger demand over the coming year.