Polish Business Climate Shifts Amid Geopolitical Tensions

Polish companies report increased sales and new orders despite a slight dip in business sentiment, according to the Polish Economic Institute. Financial liquidity remains strong, though investment sentiment weakens. Positive sentiment is mainly limited to manufacturers, with other sectors facing challenges from rising labor costs and geopolitical uncertainties.

Polish companies are experiencing a surge in sales and new orders at the beginning of the year, even as the overall business sentiment shows signs of cooling for the second consecutive month, as reported by the Polish Economic Institute (PIE) on Wednesday.

The monthly MIK index saw a minor decline by 1.5 points to 102.1 in January, following a more significant reduction of 4.9 points in December. Despite these setbacks, it remains above the neutral 100 threshold for the fourth straight month, indicating more positive than negative sentiments in the market.

Challenges such as geopolitical uncertainties and the potential for a global slowdown are impacting sentiment, but sales have seen a robust growth spurt. Nevertheless, the manufacturing sector remains optimistic, while sectors like trade, construction, and services demonstrate caution due to rising labor costs and weak investment activities.

(With inputs from agencies.)