Poland's Leading Economic Indicator down m/m in November - BIEC

The Leading Economic Indicator (WWK), which forecasts future economic activity in Poland, went down by 2.3 points in November 2020 against October and reached 159.9 points, the Bureau for Investments and Economic Cycles (BIEC) said on Friday.

WWK's components indicating production volumes in the near future deteriorated rapidly, pointing to lower economic growth. "Perhaps the expected deterioration of economic activity will not be as severe as in the spring, but the effects of the pandemic will be felt for a longer time," researchers said.

Of the WWK's eight components, three added to growth and three detracted from it, whereas the other two remained neutral.

November saw a rapid decline in new orders coming in to industrial companies, which contrasts with the usual inflow of new orders in October in November.

"There will be no Christmas boom this year. In November, 15 percent more companies experienced a drop in orders compared to those who reported increased orders, which is two-fold growth compared to the previous month," BIEC said. The worst-hit were the clothing and petroleum sectors, whereas furniture and vehicle producers were relatively better off.

The financial condition of companies has also deteriorated since the May-July period, when the first wave of the coronavirus pandemic seemed to have been contained.