Poland: Industrial output growth speeds up in January
Industrial output expanded 2.6% in year-on-year terms in January, which was above December’s 1.0% increase. January’s reading was largely driven by a notable rebound in mining and quarrying output. In contrast, manufacturing output weakened.
On a monthly basis, factory output fell 2.0% in seasonally adjusted terms in January, contrasting December’s 0.7% expansion and marking the worst result since April 2020. Meanwhile, the trend pointed down, with the annual average variation of industrial production coming in at minus 6.3%, down from December’s minus 4.0%.
Commenting on the release, economists at ING, stated:
“Despite signs of stabilisation in the manufacturing sector (slower decline in new orders reported by purchasing managers), production activity is stabilising at a relatively low level, and in the first quarter, industrial value added is likely to be at a lower level than in the same period last year. Combined with the weakness in trade, this will translate into an annualised decline in GDP in the first quarter of this year. We currently estimate this at around 1%.”