Poland’s retail sector demonstrated strong growth in July, but economists warn that it would be unwise to count on such results in the future. On the back of 6.4 percent growth in June, domestic retail consumption jumped another 6.9 percent in July. The caution now being advised, however, stems from the fact that much of this increase was due to increased fuel prices. In addition, recent wage hikes haven’t kept up with inflation. Polish consumers are thought to still have cash reserves, but they’re reluctant to take out new loans to finance their spending. A slowing economy along with the prospect of unemployment hitting 12.3 percent have led to consumer confidence figures in August falling, according to the country’s statistical office.
