Poland’s industrial production growth seems to have decelerated in September

Poland’s industrial production growth is likely to have decelerated in September. According to a Societe Generale research note, industrial output is expected to have slowed from 7.5 percent year-on-year in August to 4.5 percent year-on-year in September. In sequential terms, the industrial output had grown 12.1 percent in August.

Manufacturing growth, which came in at 4 percent year-on-year, mainly drove industrial output in August. September PMI in Poland rose to 52.2 points from the prior 51.5, remaining above the 50 points bound for the 24th straight month, indicating that new order and output growth continue to be strong. In October, Volkswagen is setting up a new factory and is expected to positively contribute to the country’s industrial production, said Societe Generale.

Meanwhile, producer prices are expected to have risen to 0.2 percent year-on-year in September, a rise from -0.1 percent in August, added Societe Generale. On the other hand, PPI in sequential terms is likely to have increased 0.2 percent. There is likelihood that there was a rise in both mining prices component and manufacturing, which is mostly driven by the higher Brent oil price and FX depreciation. Positive PPI in September might bring an end to the sequence of 46 consecutive months of negative growth, noted Societe Generale.