Poland's industrial sector shows signs of recovery

Polish industry is showing the first signs of stabilization. The Purchasing Managers’ Index (PMI) rose to 48.7 points in March, signaling a slowdown in the downward trend—even though the figure remains below the 50-point growth threshold.

For the first time in about a year, manufacturers were able to increase production. This marks the end of a prolonged period of declining activity. At the same time, demand remains a problem: New orders declined again—for the twelfth consecutive month. However, the decline slowed compared to February, suggesting that the market may be bottoming out. Export demand, in particular, remains under pressure.

The weak order situation continues to affect the labor market. Companies cut jobs again in March—at the fastest rate since fall 2023. Many firms are responding to lower capacity utilization and ongoing uncertainty.

Costs are rising – supply chains under pressure

At the same time, cost pressures are intensifying significantly. Rising energy and raw material prices are driving input costs to their highest level since the end of 2022. This trend is increasingly being passed on to sales prices.

Added to this are longer delivery times, which are attributed, among other things, to geopolitical tensions and disrupted trade routes. Many companies are therefore reducing their inventories and adjusting their procurement strategies. Despite the challenges, many companies are looking ahead with cautious optimism. They are banking on a gradual recovery in demand, new investments, and the development of additional markets.

Analysts, however, see the industry at a critical juncture: if external pressures persist, the situation could worsen further. At the same time, current trends show that the industry possesses a certain resilience to global shocks.