Poland's manufacturing sector had a further setback in April, a survey showed on Thursday, with new orders, exports and employment declining faster and output extending its slump to two years.

S&P Global's Polish manufacturing Purchasing Managers' Index (PMI) fell to 45.9 in April from 48.0 in March, remaining below the 50.0 line that separates growth from contraction for the 24th month in a row. Analysts polled by Reuters had expected a reading of 47.8.

April's reading was Poland's lowest since October.

Demand for Polish manufactured goods continued to suffer in April, as domestic markets remained weak, while exports orders were dragged down by lower orders from key European markets including Germany, France and Italy.

"Poland's manufacturing downturn was extended into April, marking the longest period of continuous decline since the survey began in 1998. Moreover new orders, exports and employment all fell at faster rates than in March," Trevor Balchin, economics director at S&P Global Market Intelligence, said in a statement.

The contraction rate for output remained flat from March. Business sentiment regarding the year-ahead outlook for production levels moved further away from a recent peak in February, but remained positive, on hopes of a recovery in market conditions and higher exports, according to the survey.

Balchin pointed to a potential lift coming from Poland's key trading partners in Western Europe.

"Although the Polish data generally weakened in April, the flash eurozone figures provided a glimmer of hope that demand from European markets may pick up soon, as overall output rose for the second month running and Germany returned to growth." (Reporting by Karol Badohal; Editing by Toby Chopra)