Polish retail sales grow strongly in June, GDP likely to have grown 4.7 pct in Q2

Polish economy continues to see strong performance in spite of subdued PMI readings and considerable deceleration in Germany, noted KBC Market Research in a report. The Polish statistical office released the recent data for industrial production and retail sales for June, which might slightly change the previous opinion, stated KBC Market Research.

Retail sales continued to be relatively solid, growing 3.7 percent year-on-year in real terms. Meanwhile, industrial output dropped 2.7 percent year-on-year in June. Furthermore, the slump in Polish industry was led by manufacturing this time. This can indicate negative signals coming from soft PMIs and weak manufacturing performance in some other European nations.

“Of course, we do not want to draw strong conclusions from one monthly figure, but we have noticed that our nowcast for the Polish GDP growth (for the second quarter) fell from 5.0 percent yoy to 4.7 percent yoy”, added KBC Market Research.