PMIs trending upwards, except for Romania

In March, manufacturing PMI indices increased in Czechia (to 48.3), Hungary (51.2), and Poland (to 50.7). In Romania, on the other hand, the PMI index declined to 46.9. This marks the 9th consecutive month of contraction in Romanian manufacturing based on the PMI survey responses. All components had a negative directional contribution this month. Moving back to Czechia and Poland, the rising PMI reflects the upward trend we see in Germany in recent months, as its manufacturing PMI reached a 31-month high in March. Although in Czechia and Germany, manufacturing PMI indices are still below the threshold of 50 and in the contraction zone, the direction is quite clear. In Poland, on top of that, the PMI index was above the threshold of 50 for the second month in a row. The external environment is becoming more growth-supportive for the manufacturing sector and the newly adopted fiscal stimulus in Germany should be good news and lift the sentiment overall. On the other hand, new tariffs weigh on the economic recovery.