Poland's business cycle indicator WWK rises by over 1.3 pts m/m in March
Poland's leading business cycle indicator WWK, which provides advance information on future trends in the economy, has risen by over 1.3 points month on month in March, researcher BIEC reported. According to the analysts, a further increase in the WWK index consolidates positive economic outlook.
This was the second consecutive month of marked improvement in the index.
"The possible consolidation of these positive changes will be determined by the coming months, when the optimism of business managers should be reflected in the so-called hard data, based on official quantitative statistics," BIEC wrote in the commentary on the survey results.
"For the time being, we are seeing a continuation of positive changes in the expectations of managers of manufacturing enterprises, although the scale of this improvement is much smaller than a month ago," it added.
BIEC reports that the biggest contributor to the increase in the index was the continuation of growth on the Warsaw Stock Exchange. The values of the WIG index in real terms reached their next peak, higher than the last local peak in April 2024.
According to BIEC, positive changes in managers' assessments of the inflow of new orders in manufacturing companies continue.
"Although the overall level of orders has not significantly improved compared to the situation a month ago, in terms of orders, directed to exports, the group of those companies with orders flowing in a wider stream than a month ago has definitely increased," it wrote.
As reported, the greatest improvement in the inflow of export orders is felt by representatives of the chemical industry.
On the other hand, a worsening of the pace of inflow of orders is indicated by producers of durable consumer goods, which is in line with data on the dynamics of retail sales.
"A relative improvement can be reported in the case of producers of capital and intermediate goods, which may indicate an imminent recovery in private sector investment," wrote the report.
This is confirmed by survey data, where company representatives are asked directly about changes in capital expenditure this year compared to last year.
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