Processing industry production volumes approximate last year’s level

The entrepreneur assessment of the situation in the processing industry has been rising steadily and in January it already topped the lowest assessment in February 2009 by 19 percentage points. According to seasonally adjusted data, however, the processing industry production in January dropped 3.9% over the previous month, indicating that the upward trend in this branch observed in some previous months is not yet sufficiently stable.

For the first time since the beginning of the crisis, the annual dynamics registered only a minimal drop – according to data adjusted to the number of working days, the production in comparable prices has dropped by a mere 0.1%.

Even though a rise in retail trade was observed in January, foreign demand must still be considered the main factor affecting the processing industry development. It fostered growth both in the traditional export branches and in some that previously were geared mostly toward domestic demand. For instance, non-metal mineral product, ready-made metal product, foodstuff, and beverage production registered monthly increases along with clothing, wood pulp product, and metal manufacturing

The annual dynamic has to a great extent been affected by a very rapid growth in the production of wood pulp products, chemicals and chemical products, and metals: these branches have stabilized their markets abroad.

The survey of entrepreneur confidence assessment points to possible positive news regarding the development of the branch –.in January the entrepreneurs’ assessment of the activity expected after a month showed the greatest improvement and in February entrepreneur confidence improved noticeably faster than in January.