31 October 2012 12:55 [Source: ICIS news]
LONDON (ICIS)--Poland and the Czech Republic are continuing to experience deteriorating business conditions, according to the latest purchasing managers' indexes (PMIs), financial information and services company Markit Economics said on Wednesday.
In a summary of the PMI for Poland, Markit said: “The headline HSBC Poland Manufacturing PMI, a composite single-figure indicator of manufacturing performance, remained below neutrality for the seventh consecutive month in October. The PMI improved fractionally to 47.3, from September’s 38-month low of 47.0, but the latest figure was still the second-lowest in the current sequence of sub-50.0 readings.
“Central to the overall deterioration in the business climate was a ninth consecutive month-on-month contraction in the volume of new business received,” it added, noting that Poland's export orders fell to a 40-month low in October.
The Czech Republic PMI remained below “the no-change mark of 50.0 in October, extending the current sequence of sub-50.0 readings to seven months”, Markit said.
“Moreover, the pace of deterioration signalled by the headline figure gathered further momentum, as the PMI fell from 48.0 to 47.2, the lowest since August 2009,” it noted.
New export business for Czech companies has declined every month since November 2011, with the latest drop again linked by anecdotal evidence to the crisis in European markets in particular, Markit said.
Poland and the Czech Republic are substantially reliant on the German market for chemical and other export sales, but Germany's economy is expected to contract in the fourth quarter of this year according to HSBC forecasts, Markit added.
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