Monday, August 25, 2025 12:53 PM EST
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Retail sales in July rose by 4.8%YoY in Poland, rebounding from June’s weaker 2.2% figure. The June dip was a one-off weakness and most likely reflected a temporary shift in consumer spending from goods to services, driven by increased travel and hospitality outlays during the Corpus Christi long weekend.
Polish retail sales of goods increased by 4.8% year-on-year in June (ING: 4.0%; consensus: 3.1%) following a small uptick of 2.2%YoY in June. Seasonally adjusted data points to stable sales in June (0.0%MoM).
Robust growth was reported in the sales of furniture, electronics and household appliances (15.3%YoY), textiles, clothing and footwear (14.7%YoY) and motor vehicles, motorcycles and parts (10.7%YoY). Sales of food and beverages declined for the second month in a row in annual terms (-0.4%YoY). The implied deflator of retail sales indicates stable prices of goods after two consecutive months of annual declines.
Sales of goods bounced back in July after June weakness
Retail sales (real), %YoY
Source: GUS
The disappointing June sales reading prompted speculation that it could mark the reversal of a growth trend – especially in the sale of durable goods – that emerged at the beginning of the second quarter. We attributed the softer June reading to a temporary shift in consumer outlays from goods to services (including hotels and restaurants) as the Corpus Christi long weekend likely boosted demand for tourism.
The July sales report is consistent with our hypothesis and suggests that at the beginning of 3Q25, households' propensity to spend was solid and private consumption should remain the key driver of GDP growth. In 2025, we still forecast economic growth in Poland at 3.5% i.e. well above the expansion expected in other CEE economies.
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Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...
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