CEE ECONOMY-Polish, Czech manufacturing decline deepens in November, PMIs show

Dec 2 (Reuters) - Falling orders extended a contraction in the Polish and Czech manufacturing sectors in November, surveys showed on Monday, as weakness in Germany kept up pressure.

S&P Global's Polish Purchasing Managers' Index (PMI) slipped to 48.9 in November from 49.2 in October, marking the first drop in five months.

The Czech headline PMI fell to 46.0 from 47.2 in October and remained below the 50 mark that divides expansion from contraction for a 30th straight month.

Both surveys continued to show the effects of ongoing weakness in European trade partners, particularly Germany.

"The headline Polish PMI suffered a setback in November as a sharper decline in new orders meant that manufacturers were unable to sustain October's brief increase in output," said Trevor Balchin, Economics Director at S&P Global Market Intelligence.

In Hungary, a similar survey published by the country's Association of Logistics, Purchasing and Inventory Management showed PMI rising to 50.3 in November, returning to extension territory after five months of contraction.

Central Europe's economies are still facing slow recoveries as the manufacturing sector drags, even as consumer demand rebounds as inflation cools after a spike in recent years that had hammered households' spending power.

The Polish and Czech surveys showed lower selling prices as firms sought to stay competitive. At the same time, Czech firms faced bigger cost burdens.

Petr Dufek, chief economist at Banka Creditas, said the drop in Czech PMI last month was another dose of reality following signs of improvement in the previous month.

"Industry is still struggling with weak demand at home and abroad, which is leading to a steady decline in new orders," he said.

"It is clear industry will not bounce back from the bottom right away. Especially if the situation in the German market does not improve."

(Reporting by Jason Hovet in Prague, editing by Ed Osmond)