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PMI index August 2021. Mood in industry below expectations

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The PMI index for manufacturing in Poland in August amounted to 56.0 points against the PAP Biznes consensus of 56.5 points and against 57.6 points in July, Markit reported. Economists explain that the lower-than-expected result was recorded due to delays in supply chains, which translated into a slowdown in production and a significant increase in production backlogs.

“According to the latest data, the Polish manufacturing sector continued to develop rapidly in August,” reads the report.

The pace of growth in production, new orders and purchasing activity, although slowing compared to the previous month, was still fast and producers continued to hire new employees. Delays in supply chains continued to hold back production, causing an almost record increase in backlogs, “it wrote.

Markit writes that poor supplier performance and the shortage of raw materials in the markets contributed to the intensification of cost pressures, although the pace of inflation was the slowest since February.

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Economists’ comments

“PMI in Polish processing went down to 56.0 points, slightly below market expectations. The reason? Delays in supply chains, which translated into a slowdown in production and a significant increase in production backlogs. Domestic demand also slowed down,” Pekao Analyzes experts wrote.

“The PMI index in August fell from 57.6pts to 56pts. It is impossible to escape the global slowdown in industry, but all indications are that the slowdown in PL is very gentle. – mBank Research experts comment.

PMI indicator

The PMI index is a leading indicator and aims to show the outlook for the economy. The index value above 50 points means recovery in the sector, and below – shrinkage of the industry. It is calculated on the basis of five sub-indices – new orders, production, employment, delivery times and inventory of purchased items.

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