Polish industrial output returns to growth in September, GDP likely to stand above 4 pct in Q3

Polish industrial output returned to growth in September, as expected. The growth was underpinned by higher number of working days and positive base effect in September. On a year-on-year basis, production rose 5.6 percent, whereas it was up 1.2 percent sequentially.

The biggest contributor was a sector of “other transport equipment”, which rose sharply by 44 percent year-on-year. Today’s data should alleviate fears that the Polish economy has been on a path for considerable deceleration.

“In our view, GDP growth should still stand above 4 percent YoY in the third quarter, although we might have even a better view next week when September’s retail sales and construction output data will be released (and we will make a final update of our nowcast of the Polish GDP)”, said KBC Market Research in a report.