The purchasing managers’ index (PMI) reading for Poland’s manufacturing sector grew last month for the first time since October 2011 on the back of a rebound in new orders and a stronger złoty.

Poland’s seasonally adjusted PMI reading for January came in at 52.2, greatly exceeding predictions of a maximum of around 50.8. A figure above 50 indicates expansion in the manufacturing sector while anything below that suggests contraction.

The January figure is the third largest month-on-month increase for Poland in the history of the index and represents the strongest improvement in the past six months. The figure was significantly better than the 48.8 recorded in December, signaling an improvement in the condition of the industrial sector.

“The survey saw a number of positive features, including a clear rise in production, a rebound in new orders (including export orders), and a stabilization in the labor market,” Bank Zachodni WBK analysts wrote in a market report.

The bank added that the data comes as a positive surprise, since it shows the impact of the European debt crisis on the Polish economy may be much smaller than had been feared.

Piotr Kalisz, chief economist for Poland at Citi Handlowy, told WBJ that Poland’s score reflects what is going on in Germany and the euro zone.

He added that the higher reading is also a result of the złoty becoming stronger compared to November and December last year.

“In January the złoty strengthened, leading to a higher PMI reading. If the złoty remains strong then the outlook for Poland’s manufacturing industry will remain positive,” Mr Kalisz added.

In contrast with the Polish PMI reading, Hungarian and Czech PMI data for the manufacturing sector in January indicated a deterioration in business conditions, though in Hungary’s case the pace of this deterioration declined from a month earlier.