The Central Statistical Office of Poland (GUS) has announced that sold industrial production (at constant prices) fell by 1.3% y/y in August (last year it increased by 5.0%) and by 6% m/m. According to experts from the Lewiatan Confederation, the prospects for industry look negative due to the economic situation in Europe and the significant increases in labor and energy costs expected in 2020.
“In industries dominated by simple jobs, the minimum wage increase exceeding 15% will be clearly noticeable, while among high-value sections, costs will be increased by lifting the 30-fold limit,” said Sonia Buchholtz from the Lewiatan Confederation, commenting on GUS’s data.
In addition, GUS has announced that the decline in industrial production in August concerned 18 industries, which, as Buchholtz emphasized, account for 62.2% of the overall industrial production value. They include the production of motor vehicles (a 10.8% decrease y/y) and metal production (a 6.3% decrease y/y). Both industries were in the black only a year ago, she noted.