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Retail Sales Growth Reaches 6.2 pc in October

MTI-Hungary Today 2019.12.05.

Retail sales in Hungary climbed an annual 6.2 percent in October, edging down from a 6.3 percent increase in September, data released by the Central Statistical Office (KSH) on Thursday show.

Calendar-adjusted data show retail sales were up by 6.2 percent year on year in October. Adjusted food sales were up 3.4 percent, non-food sales climbed 9.8 percent and vehicle fuel sales were up 5.4 percent year on year.

In the non-food segment, adjusted retail sales of non-specialised stores climbed 14 percent, sales of clothing retailers rose by 6.5 percent, sales of book and computer shops were up 6.4 percent, and sales of second-hand shops increased by 6.2 percent. Sales at chemists rose by 4.6 percent and sales of furniture shops were up 2.2 percent.

Online and mail order sales jumped by 38 percent, accounting for around 6.2 percent of total retail sales.

Sales at petrol stations were up 5.4 percent.

Sales of motor vehicles and vehicle parts, which are not included in retail sales, climbed 29 percent.

In absolute terms, retail sales came to 1,098 billion forints (EUR 3.3bn) in October.

In January-October, retail sales rose by 5.9 percent according to both unadjusted and calendar year-adjusted data. Adjusted food sales rose by 3.2 percent, non-food sales climbed 8.8 percent and fuel sales increased by 6.8 percent.

Analysts expect 6 percent growth for full-year

Gergely Suppan of Takarékbank said he expected the dynamic retail sales growth to continue as real wage growth could exceed 7 percent this year. He forecast retail sales growth of 5.9 percent this year and 4.3 percent in 2020 compared to 6.7 percent last year.

Péter Virovácz of ING Bank said the latest retail sales growth data, which exceeded expectations, are still clearly linked with non-food sales. He predicted full-year retail sales growth of over 6 percent in 2019.

Featured photo illustration via pixabay.com