Poland's Purchasing Managers' Index (PMI) remained unchanged at 45 in June (chart), the economic intelligence company S&P Global said on July 1.

The reading inched up above the consensus, which assumed a drop of 0.1 points to 44.9. The indicator has now lingered below the 50-point mark separating contraction from growth for 26 months straight, the longest series since the survey began in 1998.

“Sharp declines were indicated for production, new orders, exports and employment, while purchasing activity fell for a record twenty-fifth month running,” S&P Global said.

“Weak demand was accompanied by a lack of inflationary pressure, as both input and output prices fell slightly since May,” the index’s compiler also said.

The June reading extends the waiting time for a sustained recovery in Poland’s manufacturing sector, which appears to lag the trend in the Eurozone countries, Poland’s key trade partners.

“The main source of weak foreign demand was Germany, where the PMI index in manufacturing decreased in June – similarly to France and the entire Eurozone,” PKO BP said.

“We expect activity in manufacturing to improve due to the continued recovery in domestic consumer demand and an increase in export orders, although we may have to wait a bit longer for the latter condition to become reality,” PKO BP also said.

June data from Poland's industrial sector – production and the PPI – will be published by the statistical office GUS in late July.

Poland’s industrial sector – covering manufacturing, energy production, mining and quarrying, as well as water and waste management – contracted in May, latest available data show.

Output fell 1.7% year on year in the fifth month after a gain of 7.8% y/y in April, GUS said on June 20.

Meanwhile, the producer price index (PPI) declined 7% y/y in May, following a revised fall of 8.5% y/y in April, GUS also said.