Poland’s manufacturing sector growth eased to the lowest since the beginning of 2021, the impact of war in Ukraine due to the uncertainty caused by the war in Ukraine and increased inflationary pressures around the world, survey data from S&P Global showed on Friday.
The manufacturing purchasing managers’ index, or PMI, fell to 52.7 in March from 54.7 in February.
Economists had forecast a score of 53.1. A PMI reading above 50 suggests expansion in the sector.
“The tragic development of war in Ukraine had an inevitable destabilizing impact on the Polish manufacturing sector in March,” Paul Smith, economics director at S&P Global, said.
Production declined for the first time in fourteen months in March and contraction in sales ended a fifteen-month sequence of growth.
Export orders dropped to the steepest since mid-2020 and suppliers’ delivery time was delayed due to Russia-Ukraine war.
Input price inflation rose to the highest since July last year.
The sentiment weakened to its lowest level since November 2020, while firms have retained a positive outlook, with the hope that if price and supply chain difficulties disappear, then a post-pandemic rise in sales will lead to output growth in the coming 12 months.