The international financial services company reported on Monday that the Polish PMI rose to 45.6 in December, from 43.4 in November.
But overall "Poland's manufacturing economy ended 2022 on a subdued note, with operating conditions deteriorating again markedly," S&P Global said.
"Both output and new orders fell further," while employment and purchasing "continued to be cut" amid a challenging economic climate at home and abroad, it added.
The "rates of decline were generally softer than those seen in November, and there was some positive news on the inflation front as costs rose to a noticeably weaker degree," according to S&P Global.
Paul Smith, economics director at S&P Global Market Intelligence, was cited as saying that "Poland's manufacturing sector remained deep inside contraction territory in December to end the year in recession."
He added that firms "understandably, facing further downturns in demand and production, alongside generally uncertain and unpredictable market conditions, continued to optimise their resources, even making further reductions to both their purchasing activities and employment."
'Hopes that the worst of the downturn is behind us'
However, "there were some positive signs, even at these depressed levels," Smith said.
He added: "Rates of contraction have generally eased, and whilst a long way to go still, the sector is slowly making its way back towards stability. Moreover, inflation rates are heading downwards, with costs rising at their slowest rate for 29 months, adding further to hopes that the worst of the downturn is behind us."
The PMI is a composite indicator of manufacturing performance evaluated on the basis of new orders, output, employment, suppliers’ delivery times and stocks of purchases.
Any figure greater than 50 indicates overall improvement of the sector.
Poland’s PMI in April 2020 fell to its lowest level on record amid coronavirus fears, sinking to 31.9 from 42.4 a month earlier at the height of the COVID-19 crisis.
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Source: IAR, PAP, pmi.spglobal.com