FX.co ★ Polish Factory Downturn Deepens in December

Poland's S&P Global Manufacturing PMI experienced a decline, reaching 48.5 in December, a drop from 49.1 in November. This represents the eighth consecutive month of contraction, and the most significant decline since August. The deceleration in output accelerated with the softening of new orders, particularly from key markets such as Germany and France, accompanied by a decrease in new export orders. Although employment and purchasing activities diminished slightly, stocks of purchases saw a modest reduction. Supplier delivery times continued to extend, yet the backlog of work stayed above the historical average. On the pricing front, input costs increased for the second straight month, influenced partially by the rise in prices for plastics, metals, and tariffs. However, output prices decreased for the third time in four months. On a more optimistic note, business confidence markedly increased. The Future Output Index recorded its second-largest gain in five years, buoyed by anticipated market recovery, acquisition of new customers, and developmental projects. This improvement has restored optimism to the long-term average.