Poland's Aug PMI data shows pick-up in economic activity

Poland Markit manufacturing PMI came in at 51.5 in August, compared with 50.3 in July. Poland's manufacturing sector expanded in August as companies booked new orders on rising export demand. Details showed that employment in the sector continued to rise robustly.

"The latest data suggest that the year-on-year drop in official manufacturing output observed in July will not be repeated, and bodes well for manufacturing continuing to support overall GDP growth in the third quarter," said Trevor Balchin, senior economist at Markit.

Markit expects Poland's economy to grow 3.4 percent in 2016, although there are rising risks to the forecast because of Poland's new sales tax and uncertainty after the U.K.'s vote to leave the European Union.

Moody's is set to review Poland's ratings on Sept. 9 and investors fear a downgrade after the agency warned last week over tension with Brussels over Warsaw's constitutional tribunal crisis.

The zloty rebounded from a one-month low against the euro on Thursday after Polish PMI data. EUR/PLN, which has opened above the 4.3641 level this morning, slid to 4.3511 and was trading at 4.3640 at around 11:30 GMT.