Poland's manufacturing sector grew at a slower pace in March than in February and production fell for the first time in 14 months, a survey showed on Friday, as the war in Ukraine weighed on demand and worsened supply-chain problems.
IHS Markit's Purchasing Managers' Index (PMI) for Poland fell to 52.7 from 54.7, remaining above the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 53.1.
"The tragic development of war in Ukraine had an inevitable destabilising impact on the Polish manufacturing sector in March," said Paul Smith, economics director at IHS Markit.
"Output and new orders fell amid understandable caution and hesitancy amongst clients, with trade from neighbouring eastern countries hit hard."
Russia's invasion, which started on Feb. 24, also led to new order book volumes declining for the first time since late 2020.
Supply chain difficulties created by the COVID-19 pandemic worsened as a result of the conflict, with transport delays becoming more frequent and difficulties in sourcing input materials becoming greater.
(Reporting by Alan Charlish; editing by John Stonestreet)