August industrial output growth gives rise to cautious economic optimism

A slight rise in August's industrial output is being interpreted by analysts as a sign that the economy bottomed out in the second quarter. Central Statistical Office (GUS) figures released yesterday show that industrial production rose 5.9% last month after July's 1.4% fall, and was 0.7% higher than in August of last year. "The economy will not weaken any further in the third quarter, but I can't see a big recovery of growth either," said Dirk Woelfer, economist at Standard & Poor's MMS in Frankfurt. Other analysts point out that the Polish economy is vulnerable to any impact on global growth from last week's deadly attacks in the United States. "These are good figures. The data show that our economy has not entered the path of recession," said Dariusz Rosati, one of 10 Monetary Policy Council (RPP) members. "But we must be aware that any August figures give little basis for forecasts, because last week's tragic event in the United States could change the economic outlook," he said. (Reuters)