- Despite accelerating growth rate of Polish households’ revenue their tendency to increase spending remains low - Łukasz Kozłowski, expert of Employers of Poland comments on CSO (Central Statistical Office) data on retail sales growth.
Last month, we saw wage growth acceleration in enterprises. We should bear in mind the consumer price deflation - which also translates to an even faster growth in real wages - as well as the decrease in unemployment, which has a huge impact on the overall purchasing power. In a situation when fuel and food are becoming cheaper, a bigger part of household budgets can be spent on other needs. But this did not happen, as consumers are attached to the nominal value of their earnings and do not feel much more well off if their purchasing power is increased due to lower prices.
However, the situation looks better than the data expressed in current prices could suggest. Taking into account the impact of deflation on the final result, the value of retail sales increased by 3.7 percent compared to the same period of the previous year. It is still far less than at the beginning of the year, but enough to sustain a positive impact of domestic demand on GDP growth in Poland. Given the increasing purchasing power of consumers, it seems that the chances of improvement in retail sales in the near future are much greater than the risk of deterioration.
Łukasz Kozłowski, expert of Employers of Poland