Industrial output is below expectations in February
In February, industrial output fell 0.1% y/y and 2.7% m/m, after a 10.1% y/y rise and a 8.9% m/m decline in January, the Central Statistical Office (GUS) said on Friday. The data was worse than expected by analysts who had estimated to production to grow 0.5% y/y. According to GUS, output rose in 16 out of 29 industrial sectors. A relatively good situation was recorded in the sectors of metal and rubber products, machines and electric devices, chemicals and furniture. The biggest slide was recorded in the tobacco industry, computer sector, metal sector and transportation vehicles production. Sales of the mining industry fell 8.3% m/m and 6.3% y/y and that of processing industry by 3.4% m/m but was unchanged from last year's figures. The data confirmed Poland's weak domestic demand as well as declining export growth rates. Tadeusz Chroscicki, Head of the Government Center for Strategic Studies, was concerned about the producer prices, which were higher by 0.1% m/m only, after three consecutive months of a slide and rose only 4.2% y/y, versus a 4.7% increase recorded in January. Chroscicki said that such a slow increase in producer prices meant that producers had to sell their products at production costs. He also commented that the data suggested that the Monetary Policy Council (RPP) should lower interest rates and ignore the budget situation, otherwise Poland would face a recession. bb, kp
Źródło:IntelliNews Daily
