Industrial output year-on-year growth in February gives cause for optimism

There has been mixed reaction from analysts, after industrial output in February recorded its first year-on-year growth for three months. Central Statistical Office (GUS) figures released yesterday show output fell by 2.1% last month, after a 5.0% fall in January. But in year-on-year terms it rose by 0.4%. If such a result is repeated in March. analysts agree it will indicate a general upturn in the economy. Arkadiusz Krzesniak from Deutsche Bank told Gazeta Wyborcza the situation would improve even more, once the positive effect of last year's interest rate cuts are felt, probably in another few months. Other economists are not so optimistic. "We are not seeing a fundamental change in the economy. It's rather the status quo: weak real sector and no clear inflationary pressure," said Marcin Mroz from Societe Generale. (Gazeta Wyborcza, p. 18; Reuters) A.D.