April 24 (Reuters) - Polish retail sales and industrial
output disappointed in March, with data showing weaknesses in
central Europe's biggest economy at the end of the first
quarter.
The region's economies are facing recession risks as price
growth over the past year hits consumers and puts pressures on
firms through lower demand and higher costs.
Poland's retail sales at constant prices slumped 7.3% on the
year in March versus a 5.9% decline expected by analysts.
Industrial output fell 2.9% against a 1.9% drop expected by
analysts.
PPI meanwhile slowed to 10.1% versus 11.0% expected.
"The data show weakness of the economy at the very end of
1Q23 on all fronts: manufacturing, construction and retail
trade," Piotr Bielski, head of economic analysis at Santander
Bank Polska, wrote.
Bank Pocztowy chief economist Monika Kurtek said the data
meant that gross domestic product probably fell by about 0.5%
year-on-year in the first quarter.
Finance minister Magdalena Rzeczkowska told a news
conference that GDP growth in 2023 as a whole would be around 1%
when asked about Monday's data.
The energy sector proved the biggest drag on industrial
production with output falling 21.8% on the year, while retail
sales of fuels dropped 20.7%.
Meanwhile, Hungarian business and consumer sentiment both
deteriorated in April based on think tank GKI's monthly survey,
with industrial and services companies turning more pessimistic
about their prospects.
Czech consumer confidence, however, hit its highest level
since October 2021.
(Reporting by Karol Badohal in Warsaw, Jason Hovet in Prague
and Gergely Szakacs; Editing by Alison Williams)
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