Poland Manufacturing Contracts Most in a Year

Poland’s S&P Global Manufacturing PMI fell to 46.1 in June 2026 from 49.4 in May, defying expectations of an improvement to 49.7 and marking the sharpest deterioration in factory activity since July 2025. The decline was driven by the steepest drop in new orders in a year, reflecting weaker demand, slower economic activity, difficulties attracting new customers, high client inventories, and tighter customer budgets. Export orders also fell at the fastest pace since July 2025, pushing manufacturing output back into contraction at the quickest rate in 11 months. Employment and purchasing activity declined further, while inventories of finished goods rose as unsold stock accumulated. Inflationary pressures eased, with both input cost and output price inflation slowing to three-month lows despite continued increases in raw material, energy, transport, and packaging costs. Business confidence weakened to its lowest level since late 2022.

Poland’s S&P Global Manufacturing PMI rose to 49.4 in May 2026, above market expectations of 48.6 but remaining below the 50 threshold, signaling a continued contraction in factory activity for the thirteenth consecutive month, albeit at the slowest pace. The improvement was mainly driven by higher output, supported by tentative signs of a recovery in market conditions, improved availability of certain raw materials, and the opening of new stores. Production expanded for the second time in the past three months despite a fourteenth straight decline in new orders, as demand remained constrained by economic and geopolitical uncertainty and elevated customer inventories. Export orders also fell, though only modestly. Input price inflation eased from April’s near four-year high but remained elevated due to higher raw material, transport, and energy costs. Business confidence stayed positive, supported by expansion plans, new products, and entry into new markets.

Poland’s S&P Global Manufacturing PMI edged up to 48.8 in April 2026 from 48.7 in March, surpassing market expectations of 48.6 but remaining below the 50 threshold, signaling a twelfth straight month of deteriorating business conditions. It was weighed down by a faster decline in new orders, which fell for the thirteenth consecutive month amid weak demand and heightened uncertainty over supply chains and shortages linked to the Middle East conflict. Output declined, marking its eleventh contraction in the past year, though the pace was mild. Meanwhile, cost pressures surged, with input prices rising at the fastest rate since May 2022 due to higher raw material and transport costs. Firms passed these increases on, lifting output prices at the quickest pace since June 2022. Firms built up inventories and faced longer delivery times, while employment fell for the twelfth straight month. Manufacturers remained cautiously optimistic, though confidence slipped to a five-month low.