The PMI declined to 47.1 in February from 48.8 in January, signalling the 10^th straight month of contraction, as any reading below 50 indicates shrinking activity.

The latest data show the steepest worsening of business conditions since August 2025, largely due to faster declines in new orders and employment, Reuters news agency reports.

According to a Reuters poll, analysts had forecast a PMI reading of 49.3.

New orders declined for the 11^th consecutive month, and the pace of contraction quickened to the steepest level since July 2025. Export orders also decreased for a third straight month, although the drop was less pronounced than the overall fall in demand.

Manufacturing output declined for the 10^th consecutive month, although the reduction was relatively small and the mildest since November. Employment contracted at the fastest rate since May 2024, as companies responded to softer demand and expectations of weaker revenues.

Furthermore, input cost inflation rose significantly, hitting its highest point since January 2023, driven by increases in the prices of raw materials including metals and wood products. However, despite higher costs, firms did not raise their selling prices, resulting in a slight decrease in output prices.

“Poland's manufacturing sector endured a tough February with a combination of weakening new orders and sharply higher input price inflation. The headline PMI fell to 47.1, erasing much of the recovery seen over the second half of 2025,” said Trevor Balchin, Economics Director at S&P Global Market Intelligence.

Despite ongoing difficulties, Polish manufacturers maintain a positive outlook for the coming 12 months, anticipating that an economic rebound and an increase in new orders will support future growth.