FX.co ★ Polish Factory Activity Posts Largest Drop Since 2023

The S&P Global Poland Manufacturing PMI fell to 44.8 in June 2025, down from 47.1 in May, defying expectations of a rise to 49. This marks the most significant decline in manufacturing conditions since October 2023. The downturn was largely due to a continued decrease in new orders amidst stagnant market conditions and weak international demand, particularly from European markets. Export orders experienced their steepest decline since September 2023. As a result, production dropped at the quickest pace since November 2022, leading companies to reevaluate their capacity and reduce employment for the fourth occasion in 2025, although the rate of job cuts eased slightly compared to May. On the pricing front, pressures remained restrained, as input costs decreased, ending a three-month period of inflation, while output prices saw a modest rise for the fourth time in five months. Looking forward, business confidence has waned, with the 12-month outlook reaching its lowest point since November 2024.