CEE growth likely to remain steady

Central Europe growth had been buoyant. However, with global growth under pressure, some initial signs of a possible fraying at the edges have arisen. This week's PMI and retail sales data will shed some light on the direction of CE growth. 

"The August PMIs is expected to be strong based on the slightly higher euro area flash estimate. In particular, Hungary's PMI is likely to improve from a very low level last month while Czech PMI levels appear to be unsustainably high and some downward reversion is foreseen, but Russia and Turkey PMI will likely stay low", says Barclays. 

July retail sales from CE got off to a very poor start with Poland's level decelerating considerably. Better results is expected from Czech Republic next week in particular, as well as Hungary and Romania.