The improvement points to some easing of distress in Poland’s manufacturing sector after the index collapsed to an all-time low of 31.9 in March in the wake of the COVID-19 pandemic.
The fall is less an effect of the pandemic than the weakness of Estonia’s energy and manufacturing sectors.
The pandemic depressed oil prices globally, causing a 23.4% y/y collapse in Poland’s fuel prices. That drove the headline figure down although price growth in other main segments offset the decline to a degree.
Steady growth in new cases in several countries despite easing of lockdowns, numbers pushed up by outbreaks at industrial plants.
Retail sales crashed 17.9% y/y in April, a fall that was expected after the government instituted a lockdown to contain the spread of the coronavirus.
A steep reduction in shops’ turnover in April is hardly a surprise, given the fourth month was the first – and only thus far – full month of lockdown, imposed by the authorities to limit the spread of the pandemic.
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A contraction had been expected in April, but at 24.6% y/y the magnitude of the fall surprised the market.
The reading sees the PPI deflation deepen its fall after the index slid 0.5% y/y in March.
Estonia's producer price index retreated 4.4% y/y in April, after falling 3.5% y/y in March.
Slowdown in new cases in Eastern Europe, while lockdowns already being lifted in Central and Southeast Europe.
Performance ranges from a contraction of 5.4% q/q in Slovakia to growth of 0.3% q/q in Bulgaria and Romania.
Plunge in producer prices driven by crashing oil prices, an effect of the global oil market depression caused by the pandemic.
The slowdown came mainly on the back of prices falling in the housing and transport sectors, an effect of the falling oil prices because of the coronavirus pandemic that depressed the global oil market.
The precipitous decline of the indicator points to a worsening crisis that will likely weigh down severely on the entire economy in the second quarter.