Polish industrial data likely to rebound partially in February

Polish January real economy data failed to impress the markets, with decline in industrial output on month basis, while retail sales and construction data also weakened. The manufacturing sector posted a decline in January, while the sharp rise in the public sector orders which strengthened December data also decreased.

Retail sales edged up 0.9% yoy in January against markets expectation of 3%; markets will focus on this data as the economy's growth is primary driven by household consumption.

"We know that sentiment in Poland has cooled down somewhat because of political developments, and the PMI has dropped back to near 50. But, we anticipate a partial rebound in the February industrial data, and expect retail sales to re-accelerate once the child benefit scheme is activated" Commerzbank said in a research note