Poland's manufacturing sector posted its weakest rate of growth since early 2021 in April, a survey showed on Monday, as supply-chain problems, surging inflation and market instability linked to the war in Ukraine weighed on the sector.
S&P Global Poland's Manufacturing Purchasing Managers' Index (PMI) for Poland fell to 52.4 in April from 52.7 in March, remaining above the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 52.2.
"Stretched supply chains, rapidly rising prices and heightened uncertainty due to the war in Ukraine all continued to impact the sector, although there were signs of some stabilisation," said Paul Smith, Economics Director at S&P Global.
New orders declined for the second month in a row, as turbulent market conditions and rising prices dampened demand both at home and abroad.
With input costs rising, companies continued to hike their own prices and inflation at the factory gate hit a new record.
Output rose at a modest rate, but was held back by product shortages which resulted in rising backlogs of work.
(Reporting by Alan Charlish; Editing by Toby Chopra)