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Dynamic increase of production costs slows industrial output's growth rate


2008-08-29

In our opinion, the slower growth rate of industrial output observed in the last months is a result of dynamically increasing production costs (high growth of wages and prices of energy and raw materials) and impaired external demand (consequence of appreciation of the zloty and weaker economic conditions in the eurozone). We expect that in August (when the number of working days will be smaller than in the previous year), the growth rate of industrial output will decrease even further, and be maintained at a moderate level by the end of 2008.



Paweł Sionko
Construction Market Analyst, PMR

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