Industry pessimism in Germany, Poland, and the Eurozone intensifies

The Purchasing Managers’ Index (PMI) for German manufacturing fell to 45.1, down from 47.8 in September. This is still slightly above the economic stagnation level (44 points), but the German economy is closer to this point than to the neutral level of 50 points. A deepening decline in new orders was recorded, which, in turn, affected the Polish sub-suppliers.

The S&P Global Poland Manufacturing PMI fell to 42 in October pointing to an eighth consecutive month of falls in export orders. This is not surprising, given the fact that Poland’s main trading partners are Germany and other EU countries with manufacturing activity also clearly weakened.

The S&P Global Eurozone Manufacturing PMI fell to 46.4 in October from 48.4 in September. The index value was recorded in the sub-50.0 territory for a fourth month in a row. The level of incoming new orders fell rapidly in October. In over 25 years of data collection, the rate of decline seen in new orders during October has only been surpassed during the global financial crisis period between 2008 and 2009. The Eurozone is trying to combat high inflation and surging energy prices.