Polish industrial production expanded 9% y/y in January, data from statistical office GUS showed on February 17.
The surge marks a third consecutive month of growth, although expansion in November and December was much slower. Two extra working days in January had an effect, and seasonally adjusted the reading drops to 4.1%, and even -0.2% m/m, but the result still shows decent momentum at the start of the year.
The Polish economy expanded 2.8% last year, with investment especially disappointing, but the government has long insisted the economy will return to form in 2017. A more positive outlook on GDP growth for early 2017 was also strengthened by strong retail sales growth of 9.6% reported the same day.
The annual reading for industrial production was driven mainly by 10.2% y/y growth in the manufacturing segment, while water supply expanded 6.4%. The utilities segment recorded growth of 2.9%. The only part of the industrial sector to see decline was mining and quarrying, which contracted 0.5%. In monthly terms, industrial output declined 1.9%.
After several months of falls, a growth of 2.1% was also recorded in the construction sector, which suggests the investment lull is on the cusp of a revival thanks to improving uptake of EU funded public projects. While seasonally adjusted the reading drops to -2.6%, that is still the strongest result since December 2015.