WOOD Flash – Poland macro: April data paint an encouraging picture

We delve into the details of the business surveys released by the Polish statistical office (GUS) for April, to understand the current state of three key sectors of the economy: manufacturing, construction and services. The high cost of labour and softening demand are the top two factors that are restraining production across business segments; however, what stands out as a trend is that companies are reporting growing competitive pressures. Companies are not reporting a worsening of their financial position, nor financial constraints, as a big part of production constraints. This leads us to believe that the financial position of companies in Poland, in the aggregate, remains robust and much better, on average, than what we see in Romania and Hungary, where signs of financial difficulties have begun to appear.