* Poland's Q1 GDP at 2.0% y/y, above first estimate

* Polish manufacturing slump deepens in May

* Czech PMI downturn eases, Hungary PMI unchanged

* Manufacturers show optimism for recovery ahead

(Adds Polish GDP data, Czech GDP background, Capital Economics quote, other details in paragraphs 2-6, 11)

June 3 (Reuters) -

Poland's economy received a boost from household activity in the first quarter, data confirmed on Monday, while manufacturing surveys in central Europe showed a two-year decline was continuing in much of the region.

After stagnating or contracting last year, central Europe's economies are looking for revived household activity to drive growth in 2024, now that the sharp inflationary surge of the past few years has subsided.

Factories, though, are still nursing wounds from that period, evident on Monday in the release of Polish gross domestic product data and purchasing managers indices (PMI) from around the region.

Polish GDP increased by 2.0% year-on-year in the first quarter, faster than previously estimated, and was led mainly by a 4.6% rise in household consumption, its biggest contribution to economic activity in two years.

Similarly,

Czech GDP

data released last week showed modest growth to start 2024, driven primarily by households.

Manufacturing, meanwhile, remains stuck in a downturn after price surges pushed up costs for materials and energy while shrinking their order books.

S&P Global's Polish PMI fell to 45.0 in May from 45.9, missing forecasts and staying below the 50 mark separating growth from contraction for the 25th month in a row. Some analysts said two long holiday weekends in May weighed on the result.

In the Czech Republic, the S&P Global PMI stayed in contraction territory at 46.1 in May, rising from 44.7 in April.

Hungary's PMI, published by its Association of Logistics, Purchasing and Inventory Management (MLBKT), was unchanged at 51.8 in May, staying just within growth territory. But production growth slowed, the survey said.

In Polish manufacturing, new orders fell for the 27th month running, according to the PMI survey. Czech output shrank, although the drop was the second slowest in the past year and the decline in new orders was the smallest in over two years.

"This offers hope that a recovery in (Czech) industry – albeit a slow one at this stage – is starting to take hold," Capital Economics said in a note.

Both surveys showed producers were more optimistic on a recovery this year, even as they deal with weakness in their main trading partners such as Germany.

Monika Kurtek, chief economist for Bank Pocztowy, said the greatest challenge for Polish industry remained difficulties in export destinations like Germany or France, "from which fewer orders are coming".

"However, they are counting on recovery in these economies, and in (Poland) and the entire European Union, which is an optimistic sign," she said.

(Reporting by Jason Hovet in Prague, Pawel Florkiewicz and Alan Charlish in Warsaw, and Anita Komuves in Budapest; editing by Sriraj Kalluvila and Mark Heinrich)