Poland’s manufacturing PMI fell to 46.1 points in June from 49.4 points a month earlier, moving clearly further below the 50-point threshold and signalling the sharpest deterioration in business conditions since July 2025.
Weak demand remains the main source of pressure on the sector. New orders declined at the fastest pace in a year, leading to another drop in production. Output fell at its strongest rate in 11 months, while inventories of finished goods increased as incoming orders remained insufficient.
Manufacturers also continued to reduce employment and cut back on purchases of raw materials and components, adjusting production capacity to weaker demand conditions.
One positive element of the report was the continued easing of inflationary pressure. Both input costs and prices charged for finished goods rose at their slowest pace in three months. This could improve conditions for the broader economy in the coming quarters if lower cost pressures are sustained.
However, business sentiment deteriorated noticeably. The expected production index recorded its sharpest monthly decline since the start of the pandemic, highlighting growing uncertainty among manufacturers about the outlook for demand and activity.
Overall, the data indicate that Polish industry remains under pressure from weak demand. At the same time, softer price dynamics may create conditions for a gradual improvement in economic activity in the coming quarters.
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