Polish factories' business conditions deteriorated sharply in June, with marked falls in output, new orders and purchasing accompanied by further job shedding, a survey showed on Monday.

S&P Global's Polish manufacturing Purchasing Managers' Index (PMI) fell to 45.1 from 47.0 in May, remaining below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a reading of 46.7.

The June result signalled a downturn in the goods-producing sector for the fourteenth successive month and the worst overall performance since last November, but was broadly in line with the trend level of 45.2 over the downturn period.

"Poland's manufacturing downturn worsened in June as the sector remained exposed to weak European markets, especially Germany", said Trevor Balchin, Economics Director at S&P Global Market Intelligence.

"There was a fresh record decline in output prices, and the second-fastest drop in input prices in the 25-year survey history. This bodes well for the inflation trajectory in the second half of the year, which may spur a recovery in demand," he noted.

June data signalled weak underlying demand for Polish manufactured goods and export new business fell sharply, with Germany cited as a key source of weakness.

Firms remained confident of higher output over the 12-month horizon, but sentiment remained relatively weak in June, according to the survey. (Reporting by Karol Badohal; Editing by Toby Chopra)