Polish June retail sales grow 1.2pct y/y, much below expectations
July 24, 2014
Polish retail sales rose at an annual rate of 1.2% in June, on a 1.1% monthly decrease, the Central Statistcial Office (GUS) said.
The analyst survey by PAP Polish news agency had shown consensus expectations for annual growth of 4.4% and a monthly increase of 2.2%.
In real terms, Polish retail sales were up by 1.8% y/y in June after a 4.3% y/y increase in May, GUS added.
The disappointing reading may strengthen market expectations of interest rate cuts on assumption of a stronger than previously expected GDP growth slowdown in Q2, BZ WBK Economist Agnieszka Decewicz said.
“We assumed that retail sales should gradually improve, with the growth rate exceeding 4% for the full year. Improvement on the labor market and unemployment rate decrease should support that scenario,” she also said.