Friday, 25 September 2026
Poland’s construction market strengthened in August, adding to evidence that investment is becoming a more important contributor to economic growth. Construction and assembly production increased by 6.7% year on year, reversing the 2.4% annual decline recorded in July. After seasonal adjustment, output was 4.3% higher than a year earlier and 1.9% above July.
The improvement comes alongside stronger economic performance during the second quarter. Statistics Poland’s latest estimate shows GDP expanding by 3.9% year on year in Q2 2026, compared with 3.3% in the same period of 2025. The earlier PAIH review had put Q2 growth at an estimated 3.9%, meaning the subsequent official release confirmed that figure. Macroeconomic-Review-no.-230-2026.pdf
Industrial activity is also continuing to expand, although at a slower pace than earlier in the summer. Production increased by 4.3% year on year in August, taking growth during the first eight months of 2026 to 3.5%. This followed July growth of 5.1%, when the PAIH review showed industrial production for January-July running 3.6% ahead of the corresponding period of 2025. Macroeconomic-Review-no.-230-2026.pdf
Investment-related manufacturing has been one of the stronger parts of the industrial economy. ING noted particularly strong August growth in electrical equipment and machinery production, linking the performance partly to projects supported by Poland’s National Recovery Plan. At the same time, the bank cautioned that overall industrial output was softer than expected, showing that the recovery remains uneven.
For property developers and contractors, higher activity is being accompanied by continuing cost pressure. Construction and assembly prices increased by 6.2% year on year in August and by 0.3% compared with July. Specialised construction activities recorded the strongest annual increase at 7.0%, followed by building construction at 6.2% and civil engineering at 5.7%.
Housing delivery has also moved higher. During January-August, the number of completed homes was 4.5% above the corresponding period of 2025. Consumer activity meanwhile remained supportive of sectors including retail property, with retail sales at constant prices increasing by 3.8% year on year in August.
The labour market presents a more mixed picture. The PAIH review showed enterprise-sector employment falling 0.8% year on year in July while average gross wages increased by 6.8%. Macroeconomic-Review-no.-230-2026.pdf Employment remained 0.8% below the previous year’s level in August, suggesting that continued economic expansion is not generating equivalent employment growth among larger businesses.
The latest indicators therefore point to a Polish economy in which construction, infrastructure investment and industrial activity continue to provide support, but without uniform improvement across all sectors. September business surveys showed conditions deteriorating or remaining broadly unchanged in most areas of the economy. For the property market, the combination of recovering construction volumes, higher residential completions and continuing investment activity is positive for development pipelines, while rising construction prices remain an important constraint on project economics.
