The manufacturing Purchasing Managers' Index (PMI) for Poland suggests that operating conditions improved by the largest amount for over three years in August.

August PMI reached 53.8, up from July's six-month low of 52.1, as production grew at its fastest rate since March 2007.

The PMI – produced by HSBC and Markit – reflects the percentage of purchasing managers in a specific economic sector who reported an improvement in operating conditions on the previous month.

A PMI above 50 suggests overall improvement in the business climate, while anything below suggests a contraction. Poland's PMI has remained above the 50-point threshold for the past ten months.

Growth of new manufacturing businesses strengthened in August, while domestic demand contributed significantly to an improved intake of new orders. New export business, meanwhile, decreased to its weakest level since last October.

“The good news is that the improvement apparently resulted from domestic demand. Growth in export orders softened over the month as competition intensified among regional exporters,” Kubilay Ozturk, economist at HSBC, said in a statement.