January 22, 2020 / 10:14 AM / a month ago

Polish industrial output misses estimates as mining weighs

WARSAW (Reuters) - Polish industrial output grew more slowly than expected in December, hampered by lower mining production as warmer weather reduced demand for coal and salt.

Industrial output PLIPY=ECI grew by 3.8% year on year in December, well below the 6.1% forecast in a Reuters poll but higher than November’s rise of 1.4%.

“The growth rate of industrial production in the coming months will depend on domestic and foreign demand, but also atmospheric conditions will be significant,” said Monika Kurtek, chief economist at Bank Pocztowy.

The surprise reading comes against a backdrop of a prolonged slowdown in Polish factory activity, with the IHS Markit Purchasing Managers’ Index (PMI) for manufacturing showing the sector enduring one of the longest downturns in the survey’s history.

According to Kurtek, the reading would be neutral for Polish rate-setters, who mainly watch inflation. Polish CPI hit its highest point since 2012 in December.

At 0925 GMT, the Polish zloty EURPLN= was bid 0.16% weaker against the euro at 4.236.

Reporting by Anna Koper, writing by Gdansk Newsroom and Alan Charlish; Editing by Toby Chopra

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