The PMI in the Polish industry fell from 52.4 points in April to 48.5 points in May and continued to drop in June lowering to 44.4 points. In comparison, in June 2021 this indicator was at the record high level of 59.4 points.
“The survey results for June confirm that the period of continuous growth in the Polish industrial sector which started at mid-2020 has come to an end”, says Paul Smith, an economist at S&P Global Market Intelligence and the index author.
According to S&P experts, a decrease in the number of new orders is connected with unstable economic environment and galloping inflation. Price rises reduced both the internal and external demand. This is bad news for the transport sector as lower demand and reduced consumption mean fewer orders for carriers.
Unfortunately, similar signals come from Germany. Although the Germany PMI was 52 points in June, pointing to the industrial production development, it fell from 54 points in May. As in Poland, the index in June was the lowest one from the beginning of the pandemic.
What is especially worrying is that a decrease in the level of new orders has been observed there for the third straight month. Moreover, the rates of decrease accelerate. No wonder that German producers, as their Polish colleagues, are quite pessimistic about the economic situation in the next 12 months. In addition to high inflation and supply problems, the German industrial sector is increasingly worried about the reduction in consumer demand.