Złoty strength hits manufacturing hard

The data, compiled by NTC Research for bank ABN AMRO, showed that while the sector's expansion continues apace, the rate of growth is slowing.

The index fell to 52.8 in February, from 53.5 in January. A number over 50 indicates expansion over the previous month, but the drop signals a deceleration in growth. The PMI has remained over the 50-point level since June, thanks to economic growth.

"The economy appears to have lost further momentum in February," said Zsolt Papp, head of regional economics at ABN AMRO. "The marked decline in the export orders index could fuel a renewed debate about the appropriate level of the złoty."

The złoty is currently hovering near three-and-a-half-year highs against the euro, while 70 percent of Polish exports are bound for the EU. (Reuters)