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The decline in Polish manufacturing eased considerably in November, a survey showed on Friday, signalling a turning point for the sector, with new orders coming close to stabilising.
S&P Global's Polish manufacturing Purchasing Managers' Index (PMI) rose to 48.7 in November from 44.5 in October, remaining below the 50.0 line that separates growth from contraction for the 19th month in a row. Analysts polled by Reuters had expected a rise to 45.3.
The November contraction rate was slowest during the 19-month period.
In monthly terms, the 4.2 point rise in the PMI was the largest observed over the 25-year survey history, excluding the pandemic months of May-July 2020, the survey showed.
"November data provided the clearest sign yet that Poland's long manufacturing downturn is ending," said Trevor Balchin, Economics Director at S&P Global Market Intelligence.
"The headline figure remains below 50.0 but the recent momentum strongly suggests a return to growth territory in December."
Production fell again in November but, with inflows of new work nearing stability, the rate of decline slowed notably to one of the slightest in the current downturn, according to the survey.
The new orders volume fell only marginally, while some firms reported signs of a recovery in demand for manufactured goods.
Longer supplier delivery times and the first increase in average input prices in eight months provided signs of a wider European and global recovery in demand.
The 12-month production outlook rose to the highest since early-2022. (Reporting by Karol Badohal; Editing by Toby Chopra)