Polish industrial production grew an unadjusted 8.8% y/y in August in constant prices, data from statistical office GUS showed on September 20. In seasonally adjusted terms, industrial production grew 8.1% y/y.
The reading rose 2.6pp in unadjusted terms compared to industrial output recorded for July, providing solid grounds for expectations that the economic growth will again be robust in the third quarter. GDP expanded a better-than-expected 4.4% in the second quarter.
On top of that, following a slump last year related to a drop in EU structural fund inflows, construction continued to recover in August. Output in the sector grew by unadjusted 23.5% y/y last month. In adjusted terms, the growth in construction came in at 22.6% y/y.
Industrial production grew 5.8% y/y in January-July. The Polish economy expanded 2.7% last year, with investment especially disappointing. However, GDP surged to 4% y/y in the first quarter.
Output in manufacturing grew unadjusted 8.6% y/y in August, while production in the utilities segment boomed 23.3% on the year. Water supply and waste management saw production grow 2.5%. Mining and quarrying was the only one of the main segments to see production fall, by 5.6% y/y.
“Production grew not only in segments manufacturing consumer goods but also in ones producing goods for investment. It is clear, then, that rebounding investment influences industrial production alongside consumption demand,” Bank Millennium noted.