Industrial activity across Central Europe diverged in June, with the Czech Republic and Hungary recording renewed growth above the 50-point threshold, while Poland saw a marked deterioration, with its PMI falling deeper into contraction.
The S&P Global Poland Manufacturing Purchasing Managers' Index (PMI) for Poland tumbled to an 11-month low of 46.1 in June from 49.4 in May, marking the 14th consecutive month the index has languished below the 50.0 mark separating expansion from contraction. Analysts polled by Reuters had expected a headline reading of 49.7.
The data pointed to a pronounced weakening in demand. Production fell markedly, while new orders declined at the fastest pace since June 2025.
Export orders also continued to shrink, posting their steepest drop in over a year, reflecting weak external demand and the broader economic slowdown cited by firms.
Analysts flagged growing concerns over the outlook. Expectations for future output fell to their lowest level since late 2022.
"The results of the June survey among logistics managers raise concerns about the prospects for growth in activity in the industrial sector. At the same time, they provide signals of a decline in inflationary pressure," ING analysts said in a report.
In contrast, both the Czech Republic and Hungary saw improving industrial momentum. The Czech PMI rose to its highest level in over four years, comfortably above the 50-point mark, supported by strong growth in output and new orders.
Hungary's seasonally adjusted PMI rose to 51.5 in June (HUPMI=ECI) from 50.2 in May.
While the pace of growth remained moderate and below its long-term average, the improvement was broad-based, with higher production and new orders, even as some components, such as employment, continued to signal weakness.