SGH think-tank finds spring cooling of business climate for industrial sector

According to a report by the Economic Development Institue of the Warsaw School of Economics (SGH), the business climate in Poland's industrial sector fell again in May, re-inforcing worries about the ailing Polish economy. The Institute found a 2-point decrease, aggravated by a decline in industrial output. The downtrend was reconciled, however, by shrinking operating costs and the positive trend in the financial situation of many companies. Also the number of business orders seemed to be stabilizing ahead of seasonal growth in market activity. Companies warned last month of lower profits as they saw export profitability falling as their order portfolios were slowly contracting. Polish manufacturers claim their goods cannot compete with those produced abroad as long as the Polish zloty remains strong. (Rzeczpospolita, p. B2) J.K.