Business conditions in the manufacturing sector improved again in August. The IRG SGH industrial confidence indicator (ICI) rose for the second consecutive month, this time by 1.7 points month-over-month, to 3.3 pts. It is currently 0.5 pts higher than a year ago and at its highest level since March 2024.
The rise in the IRGIND is due to an increase in total orders.
Most of the survey’s key balances rose. The only decline was in the balance of responses to the question on employment levels, which fell from 5.1 to -2.4 pts. The balance for total orders saw the largest increase, rising by 10.6 pts. Surveyed businesses expect further growth, although their optimism is not as strong as it was a month ago. Despite the strengthening of the relatively favorable economic situation, there are still no signs of a sustained recovery that would pull the manufacturing sector out of the stagnation it has been in for many months.
Researcher:
Konrad Walczyk, kwalcz1@sgh.waw.pl