Poland’s Economic Indicator (WWK), which tracks expected economic trends, declined by 0.9 points in May compared with the previous month, suggesting that the economy continues to expand at a moderate pace.
Among the eight components of the index, one improved, four remained unchanged and two weakened.
Data from the industrial sector showed a slight increase in new orders. Although companies reporting lower order volumes still outnumber those seeing growth, the difference between the two groups narrowed compared with earlier this year.
The improvement was more visible among larger manufacturing companies. Producers of non-metallic mineral products and transport equipment recorded some of the strongest increases in incoming orders.
Analysts noted that higher EU-funded investment activity and increased defence spending may be supporting demand. Economic conditions in Germany have also shown some improvement in recent months.
At the same time, manufacturing companies continue to face pressure on profitability. Despite better financial results reported in official statistics for the first quarter, business managers do not yet report a broader improvement in financial conditions.
Higher producer prices and rising operating costs continue to affect margins, particularly where companies have not been able to fully pass increased costs on to customers.
Business sentiment surveys also indicate that companies remain cautious in their assessment of the broader economic situation.
Source: BIEC