The leading indicator of economic sentiment (WWK) in Poland estimated by the Bureau for Investments and Economic Cycles (BIEC) increased by 1.5 points and stood at 171.1 points in December. According to the bureau’s analysts, the strong growth was driven by better-than-usual consumption.
“The significant decrease in inventories of finished products in warehouses contributed to the increase in the ratio. We observe this phenomenon every year. Usually, from early autumn, producers increase inventories of manufactured goods towards increased pre-Christmas purchases. At the end of December each year they are rapidly reduced. This year, increased sales and, consequently, emptying of producers’ magazines are observed a month earlier than in previous years; it is also much larger. A strong drop in inventories of finished goods means that the coming months will be favorable for the volume of industrial production. Even if the orders will not increase, entrepreneurs will keep up the production scale for a while to rebuild stocks,” the report said.