FX.co ★ Poland Manufacturing Downturn Intensifies In October

Poland's manufacturing activity contracted for the sixth successive month in October as output and new orders fell rapidly on the backdrop of a challenging economic environment and high inflation, survey data from S&P Global showed on Wednesday.

The manufacturing purchasing managers' index, or PMI, dropped to 42.0 in October from 43.0 in September. A PMI reading below 50 suggests contraction in the sector.

Both output and new orders fell for the sixth successive month in October, and at severe rates. The overall uncertainty of the economy, the high level of inflation, and the war in Ukraine all contributed to the decline in sales.

On the price front, input price inflation remained elevated in October, led by higher energy prices. Output charges rose at the sharpest rate in three months.

Looking ahead, firms showed a pessimistic approach towards the near-term economic outlook amid projections of falls in demand and recession.

Overall, confidence with regards to future production declined to its lowest level in two-and-a-half years.

Amidst growing pessimism about the outlook, firms cut both staffing levels and purchases in October.