Poland's manufacturing sector contracted faster in October than in the previous month as soaring inflation and uncertainty about the economy, exacerbated by the war in Ukraine, affected output and orders.

S&P Global's Polish Manufacturing Purchasing Managers Index fell to 42.0 in October from 43.0 in September, remaining below the 50.0 line that separates growth from contraction. Analysts polled by Reuters had expected a value of 42.5.

"October proved to be a challenging month for Polish manufacturers, with rapid falls in both production and new orders recorded," Paul Smith, Economics Director at S&P Global Market Intelligence, said in a statement.
"The war in Ukraine, high inflation, and the hugely uncertain economic outlook all served to undermine sales and confidence heading towards year end."

As a result of the difficult business environment, firms reduced their purchasing activity. Resource prices continued to rise, and firms responded by raising their own prices to their steepest level since July.