Polish industrial-output growth slowed in October as Europe’s sovereign-debt crisis damped export demand.
Industrial output increased 6.5 percent from a year earlier, after increasing 7.7 percent in September, the Central Statistical Office in Warsaw said today. The median estimate of 22 economists in a Bloomberg survey was 7.2 percent. Production fell 2.4 percent from the previous month.
Poland’s economy is slowing as demand from neighboring Germany, the country’s biggest trading partner, wanes amid the euro area’s sovereign-debt crisis. The Polish government has scaled down its economic growth forecasts for next year to a maximum of 3.2 percent from a previous forecast of 4 percent, Finance Minister Jacek Rostowski said this month.
“There are signs of a slowdown and that will continue,” said Maciej Reluga, chief economist at Bank Zachodni WBK, in a telephone interview.
The zloty fell 0.6 percent to 4.4505 per euro at 3:12 p.m. in Warsaw. The yield on the five-year government bond maturing in October 2016 rose to 5.183 percent from 5.152.
The currency has weakened almost 11 percent in the second half of the year, helping exports and boosting import prices. Inflation reached 4.3 percent in October, remaining above the central bank’s target rate of 2.5 percent for a 13th month.
Producer prices, an early indicator of inflationary trends, rose 8.5 percent from a year earlier in October from a revised 8.4 percent the month before, the statistics office said in a separate report. The median forecast of 19 economists in a Bloomberg survey was 8.3 percent. Producer prices rose 0.1 percent on the month.
The government this month cut the most optimistic of its three economic-growth forecasts for 2012 to 3.2 percent from 4 percent.
Monika Rozlal in Warsaw at +48-22-433-4464 or email@example.com