Polish industrial production growth accelerated to 6.7% y/y in February, a considerable pick up on the feeble 1.4% expansion recorded the previous month, data from statistical office GUS showed on March 17.
The February result was above consensus, with analysts expecting 5.5% growth. In monthly terms, production grew 6.8%. That followed a monthly drop of 8% in January. Macro indicators at the start of 2016 have thrown up concern that Poland could face difficulties maintaining its pace of economic growth.
However, the February result still goes some way to restoring confidence in Polish industry, which had raised worry over its vulnerability to global pressures following the unimpressive growth in January. The performance also appears more in line with recent PMI readings. February's forward looking purchasing manager's index expanded to 52.8 points from 50.9 points in January.
“Despite concerns on the state of the global economy, foreign demand for Polish goods remains relatively strong,“ Bank Millennium claims. Overall, 29 out of 34 branches of industry posted annual growth in February. Manufacturing drove the expansion, growing 8.1% y/y, picking up clearly from just 1.8% y/y in January.
The highest increases within the sector were in the textiles segment, which boomed 24.1%, and furniture production, which increased 17%. Manufacturing of rubber, plastic, and metal products, clothing, cars, as well as computers and electronics, all saw expansion of 10% or more in annual terms. Production in the water supply sector expanded 5%, while in the mining and quarrying sector it grew by 3.9%. Production dropped in the electricity, gas, steam and air conditioning supply sector, by 5%.