Retail sales reveal optimism, industrial figures show inflationary pressures

Growing consumer optimism, reflected in increased retail sales, could be a signal that economic recovery is on its way. According to the Central Statistical Office (GUS), retail sales grew by 9.9% in March year-on-year. This could be related to Easter shopping, but even after adjusting the figures, sales still increased by 6%. "I hope in the second quarter we will see clear signs of recovery", said Grzegorz Wojtowicz, a member of the Monetary Policy Council (RPP). Nevertheless, some analysts pointed out that these figures does not necessarily mean a breakthrough, as in March industrial output figures signaled inflationary pressures in the manufacturing sector. Increased sales may be used as evidence by the more conservative RPP members who could use them as argument against lowering interest rates during the next meeting of the RPP (Rzeczpospolita, p. B1; Reuters) M.T.