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Manufacturing sector continues to expand in January


In January the PMI index for the manufacturing sector posted a slight decline, suggesting that activity in the sector might slow in the early part of 2011. However, such a decline is typical of this time of the year, and furthermore, the December reading of the index was the highest since 2004 (i.e. a time when the Polish economy expanded rapidly on the back of EU entry). With buoyant growth in domestic and export orders, and with companies reporting increasing order backlogs, industrial output should continue to grow at a solid pace in the coming months, although the rate of expansion will be moderated by a high reference base. According to our forecasts, in 2011 industrial output will grow by 8.7%.

Paweł Sionko
Construction Market Analyst, PMR

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