Polish industrial production growth likely to have slowed in August

Polish industrial production data for August is set to be released this week. According to an Erste Group Research report, Poland’s industrial production growth is likely to have decelerated to 3.3 percent year-on-year after a solid start to the third quarter 2018. This is because market sentiment has eased recently.

Furthermore, the market anticipates construction output to maintain solid dynamics and arrive at 18.8 percent year-on-year in August. Meanwhile, price pressure in the production sector should continue to be around the recently observed dynamics of 3 percent year-on-year, added Erste Group Research.

Polish retail sales data for August is set to be released this week. According to an Erste Group Research report, retail sales are expected to have increased 8 percent in August. Given the high level of consumer sentiment, growth in retail sales are expected to have stayed strong as well in August. The good situation on the labor market, low jobless rate and strong wage growth underpin the level of household spending.