Poland Manufacturing Growth At 34-Month High

Tammy Harvey
January 2, 2018

"Panellists commented on reduced volumes of new business". Consequently, firms increased their selling prices notably.

Markit's Purchasing Managers' Index (PMI) of manufacturing companies stood at 55.8 in December, down from 56.1 in November and compared with a Reuters poll of 56.3.

This was the highest score since mid-1997 and identical to the flash estimate published on December 14.

A trend of synchronised global growth that became apparent over the course of a year ago looked set to continue, with activity surveys in the euro zone and the United States later in the day expected to post strong readings. "At the broad market group level, growth was recorded across all three monitored categories (consumer, intermediate and investment)", the Nikkei statement said.

The level of new contracts received from overseas - mainly from Asia, the United States and Europe - rose at the fastest rate in the history of the survey. Furthermore, the rate of expansion quickened to the strongest since December 2012.

Despite reports of subdued demand conditions, companies raised hiring to meet production requirements although at a slower rate than the previous month. It was the first slowdown in growth since early 2016. According to anecdotal evidence, new business inflows were underpinned by greater demand from home and worldwide markets. "New export orders picked up", Orlik said.

Accordingly, Indian manufacturers upped their staffing levels at the end of the year. The pace of job creation was the strongest since September.

Delivery time of suppliers continued to be extended in December. Furthermore, input cost inflation accelerated to the strongest since April and was sharp overall. An expectation of an improvement in economic conditions was cited as the key factor behind positive sentiment.

Chinese steelmakers in 28 cities have been ordered to curb output between mid-November and mid-March, while a campaign to promote cleaner energy by converting coal to natural gas has also hampered manufacturing activity in some cities, leading to shortages and sending prices spiking.

The uptrend was driven by stronger market demand from home and worldwide markets, Dodhia added.

Moreover, as consumer spending recuperated, firms were restricted in their ability to pass on higher cost burdens to clients which further placed upward pressure on firms' margins.

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