Biznes Fakty
Industry in crisis. „The most severe collapse”
Growth patterns in the Polish economy are solidifying, as per a report from the Bureau of Investment and Economic Cycles. BIEC notes that while the circumstances are improving, there are still areas of concern. – The most significant downturn is observed in the clothing and textile sector, as highlighted by the report’s author, Maria Drozdowicz.
The Office of Investment and Economic Cycles disclosed that the Leading Economic Indicator, which forecasts upcoming economic trends, climbed to 166.7 points in May 2025, marking an increase of 2.4 points from the previous month’s figure of 164.3 points. Drozdowicz remarked that the Leading Economic Indicator „more than compensated for last month’s decline.”
„The most significant downturn in the clothing and textile sector”
– It can also be inferred that growth patterns are solidifying, although the absence of clear enhancements in the rate of new orders entering the manufacturing sector and in labor productivity improvements, which is directly tied to the low level of investments, remains a weakness in our economy – noted Drozdowicz.
She mentioned that out of the eight components of the indicator, five saw improvements, two remained relatively unchanged compared to the previous month’s figures, and one declined. In her view, May marked a notable shift in the rate of new orders coming into the manufacturing sector.
– This uptick was primarily linked to orders from international markets. Of the 22 sectors examined by the Central Statistical Office, two have shown a notably faster rate of order inflow since the beginning of the year compared to others. These sectors are associated with the automotive industry (production of vehicles and other transport equipment) and firms manufacturing computer and optical devices – reported the BIEC analyst.
She added: – The most significant downturn continues to be in the clothing and textile sector, where signs of recovery last month were merely seasonal in nature due to the holidays. In other sectors, improvements are moderate or highly variable, lacking a distinctly visible trend.
Read more: Prime Minister Donald Tusk on the economy. „Let’s not waste it” >>>
Companies facing a decline in their financial conditions dominate
She pointed out that this slight and uneven improvement in the influx of new orders across sectors has led to marginally better financial assessments of manufacturing firms compared to a month ago. However, she emphasized that it is still premature to declare a breakthrough.
„The proportion of companies (by approximately 13 percentage points) experiencing a decline in their financial conditions still outweighs those seeing an improvement. Regarding the obstacles that hinder development and directly affect the financial situation, excessively high and continually rising labor costs are predominant, as noted by nearly 60% of surveyed entrepreneurs,” the BIEC report states.
