Poland’s manufacturing PMI fell to 46.1 in June, down from 49.4 a month earlier. The reading moved further below the neutral 50-point threshold and signalled the sharpest deterioration in business conditions since July 2025.
Weak demand remains the main source of pressure. New orders declined at the fastest pace in a year, leading to another fall in production, which recorded its steepest contraction in 11 months. At the same time, stocks of finished goods increased as the inflow of new orders proved insufficient. Companies also continued to reduce employment and cut purchases of materials, adjusting capacity to weaker demand.
One positive element of the report is the continued easing of inflationary pressure. Both input costs and prices charged for finished goods rose at the slowest pace in three months. However, the clear deterioration in business sentiment is a concern, with the expected output index recording its largest monthly decline since the start of the pandemic.
Overall, the data indicate that Polish industry remains under pressure from weak demand. At the same time, softer price dynamics could create conditions for a gradual improvement in economic activity in the coming quarters.
Author: Adrian Jarysz, Director of Strategic Clients, Michael / Ström Brokerage House
