PMR Online access    |   tel. +48 12 340 51 00    |   E-mail:


BIEC: economic climate inches up in October


The Leading Indicator (WWK), which provides information on future trends in the economy, gained 0.5 points in October, the Bureau for Investments and Economic Cycles (BIEC) reported. However, the marginal improvement does not alter a deeper trend observed for over a year that points to the likelihood of economic growth stagnating, the Bureau commented.

Of the eight component indicators of the WWK, four improved compared with September and four deteriorated. The biggest positive contributor was a marked increase in money supply, partly reflecting a weaker zloty. New manufacturing orders showed a slight improvement after deteriorating consistently since the start of the year. Nevertheless, new export orders slowed further last month in all the main sub-sectors of manufacturing. Domestic orders were relatively the strongest in food and clothing. There was also a marginal increase in productivity.

At the same time, managers' assessments of the general domestic economic situation and prospects took a further plunge in October, and perceptions of own company health also worsened, though by a smaller margin. One of the factors exerting a negative impact on companies' financial performance is the rapid growth in producer prices, which were up by over 8% y-o-y in 2011 to date.

The Bureau also pointed to a small rise in the inventories of finished products after several months of declines, due to a combination of dynamic output growth and weaker orders.

The WWK is a prognostic instrument. It is a measure of the current state of economic activity and provides advanced information on upturns and downturns in economic activity in relation to GDP as well as data on production, retail sales, wages and household incomes. The average prognostic timeframe of the WWK index in relation to the actual state of economic affairs ranges from 3 to 12 months, depending on the phase of the economic cycle.

Browse and search in our archive »

subscribe to PMR RSS NEWS channelsSubscribe to PMR RSS NEWS channels »

Free monthly e-letter containing latest news, analyses and business information on economic situation in Poland, Russia, Bulgaria, Czech Republic, Hungary, Romania, Slovakia, Ukraine, Kazakhstan.
Relevant news

Useful links         Privacy Policy
Copyright © 2018 PMR. All rights reserved.

PMR is a British-American company providing market information, advice and services to international businesses interested in Central and Eastern Europe as well as other emerging markets. PMR key areas of operation include business publications (through PMR Publications), consultancy (through PMR Consulting) and market research (through PMR Research). With over fourteen years of experience, high international standards in projects and publications, highly skilled multilingual staff and a wide network of co-operating research companies and market experts, PMR is one of the largest companies of its type in the region.