Poland: Retail sales slowed down in July to 7.1% - ING

Jakub Rybacki, Economist at ING, notes that Poland’s retail sales slowed down in July from 8.2% to 7.1%YoY, in real terms, which was close to the market consensus of 7.4%YoY.

Key Quotes         

“Turnover in other durable and semi-durable goods slowed after a strong month in June, which chiefly reflects lower trade of electronics and household appliances as well as food and drinks, suppressed by the end of World Cup-related spending.”

“Sales slowed from 14.4% to 4.4%YoY and from 3.1% to -0.6%YoY respectively.”

“The drop in the overall dynamics was only moderate thanks to the simultaneous increase of motor vehicles sales accelerating from 9.8% to 16.7%YoY, which pushed the headline figure up by 0.7pp.”

“The August reading should also remain sound due to another fiscal impulse.”

“This picture suggests GDP moderation – we expect deceleration from 5.1% in 2Q18 to 4.6%YoY in 3Q18.”