Poland’s manufacturing sector expanded at the fastest pace in over more than three years in March, but fell short of expectations, as inflationary pressures rose at record pace.
The manufacturing purchasing managers’ index, or PMI, rose to 54.3 from 53.4 in February, survey data from IHS Markit showed Thursday. Economists had expected the index to climb to 55.6.
A PMI reading above 50 suggests growth in the manufacturing sector. The latest reading was the highest since January 2018.
The PMI rose for the fourth consecutive month, marking the longest sequence of gains since 2013.
Both input and output prices rose at the fastest pace since the survey began in 1998, IHS Markit said.
The biggest directional impact to the headline index came from suppliers’ delivery times in March, which is inverted in the PMI calculation.
Suppliers’ delivery times lengthened to record degree driven by the fastest rise in backlogs of work since January 2007
Meanwhile, export growth was the strongest since October 2013.
“Poland’s manufacturers clearly benefited from improving European demand in March, especially from Germany,” IHS Markit Economics Director Trevor Balchin said.
“Rising backlogs also reflected the sector’s chronic labor shortages, despite a stronger rise in employment in March,” Balchin added.
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