The month of August brought about a slowdown in the dynamics within key areas of the Polish economy, according to figures from the Central Statistical Office (GUS).

Industrial production as well as retail sales grew at a slower pace than in July. Other macroeconomic indicators suggest that consumer prices increased less aggressively than during previous months, yet more than the average salary. Firms and consumers are becoming increasingly more pessimistic.

Retail sales grew by only 2.3 percent in August y-o-y, after inflation is factored in.
“This is the second-slowest growth dynamic in over a year, which is proof of weakening consumption,” Tomasz Kaczor, chief economist at BGK told Parkiet.

Also, unemployment rose to 12.4 percent in August, compared to 11.8 percent a year ago.

With this set of data in hand, the Monetary Policy Council (RPP) may decide to lower key interest rates during its October session. The Council may however choose to wait for the central bank’s inflation and economic growth projection in November before they make a move.

Poland A.M.