Polish industrial production growth slows down to still robust 9.1% y/y in November

Polish industrial production growth slows down to still robust 9.1% y/y in November
By bne IntelliNews December 19, 2017

Polish industrial production grew an unadjusted 9.1% y/y in November in constant prices, data from statistical office GUS showed on December 19. In seasonally adjusted terms, industrial production expanded 6.9% y/y.

The reading indicated the growth in industrial production slowed down by 3pp in unadjusted terms compared to the annual expansion recorded for October.

“The data confirm the good situation in Polish industry that is helped by the economic recovery in Poland’s main trade partners and growing exports. Additional support comes from strong domestic demand, on consumption and investment side alike,” Bank Millennium wrote.

On top of that, following a slump last year related to a drop in EU structural fund inflows, construction continued to recover in November, even if at slightly slower pace. Output in the sector grew by unadjusted 19.8% y/y last month, compared to growth of 20.3% y/y in October. In adjusted terms, the growth in construction came in at 16.2% y/y versus 19.1% y/y the previous month.

As a result, Poland’s economic growth in the final quarter of the year will be only marginally slower than in July-September, when it expanded 5.2% y/y in seasonally adjusted terms.

Output in manufacturing grew by an unadjusted 10.9% y/y in November, while production in the utilities segment grew 3.2% on the year. Water supply and waste management saw production grow 1.3% on the year. Mining and quarrying was the only one of the main segments to see production fall, by 14.8% y/y.

In monthly unadjusted terms, industrial production fell 1.2% and 0.5% following adjustment. Growth came in at 6.9% y/y in January-October.