Analysts disappointed with latest GUS figures on production

"This is the second month in a row that GUS' figures have been below other projections," said Pekao's economist Jacek Wiśniewski. Market watchers expected a to see a figure closer to 16-17% as they based their calculations on the fact that August 2004 had two more working days than August 2003. Wiśniewski said positive news is that the level of production (seasonal factors excluded) for the whole 2004 was 9.5% higher. However, "Wage levels are increasing too slowly to allow the public to increase consumption. Higher interest rates also dampens demand," said Katarzyna Zajdel-Kurowska, an economist with Bank Handlowy, adding that the dynamics of production may fall in Q4 due to the strength of the złoty. (Parkiet, p. 2) D.W.