FX.co ★ Poland Manufacturing Sector Remains in Contraction

The S&P Global Poland Manufacturing PMI increased to 45.9 in July 2025, up from 44.8 in June. This figure was marginally higher than the forecasted 45.8, indicating an ongoing contraction in the manufacturing sector. Despite experiencing slight advancements across all components of the index, this period continued to show the second most significant decline since mid-2024. The downturn was primarily fueled by weak demand, as new orders fell for the fourth consecutive month, with exports experiencing their most significant drop since August 2023, heavily impacted by reduced activity in Germany. Consequently, output decreased for the third successive month, leading companies to cut jobs for the fifth time this year. Purchasing activity dropped at its fastest pace since October 2023, resulting in a continued reduction in input inventories. Regarding pricing, input cost inflation remained subdued, while output prices were lowered once again. Although there was a slight improvement in business sentiment, it stayed significantly below the long-term average, with US tariffs and competition from Asia identified as potential challenges.