Rising employment and wages are fuelling the economy

"This is strong data. Employment, which increased for the first time by over 3% and even more rapidly growing wages accompanied with low inflation, contribute to a coherent picture of an economy fuelled by consumer demand," said Ryszard Petru, chief economist of Bank BPH. According to Piotr Kalisz, an economist with Bank Handlowy, the data shows that there is an increasing pool of funds, which can be designated for consumption. "This strengthens our belief that in Q2 the economy was developing rapidly, at almost 5%," said Petru. Positive information from the labor market is fuelling expectations of prospective increase in interest rates. So far, rising wages have not had an effect on inflation, as labor efficiency was growing even faster. (Puls Biznesu, pp. 1, 11) M.M.