Poland manufacturing downturn eases, employment rises

Poland's manufacturing sector experienced a significant easing of its downturn in July, with the Purchasing Managers' Index (PMI) rising to 49.0 from 46.1 in June, according to an S&P Global survey. While still indicating contraction, the pace of decline in output and new orders slowed considerably. Notably, employment rose for the first time in 15 months, signaling a potential shift in labor market conditions. New export orders continued to decline for the eighth consecutive month, though the rate of contraction was the slowest since January. Price pressures also eased, with input cost inflation slowing to a five-month low and output price inflation reaching its weakest rate since March. Firms expressed slightly improved, though still subdued, optimism about the year-ahead outlook, partly due to anticipated orders and EU support programs.