Polish industrial production fell in September by 5.2 percent year-on-year while construction output fell 18 percent y/y, the Central Statistical Office revealed on Wednesday.
In both cases, the readings were worse than market expectations, triggering a depreciation of the złoty and a drop in bond yields.
The data was distorted by a lower number of working days than in the same period of last year, but analysts agree that the numbers still confirm that economic growth in Poland is decelerating.
Producer prices rose by 1.8 percent y/y, which is the lowest growth in two years and confirms that there is no threat of inflationary pressure, analysts at Bank Zachodni WBK wrote in a report.
These figures support expectations that the Monetary Policy Council will cut interest rates by 25 basis points in November, while two other cuts are likely by the end of Q1 2013, BZ WBK added.
From Warsaw Business Journal
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