Romanian households’ consumption of services plunges by 13.9% y/y in January

The turnover volume index of Romanian companies that deliver services to households contracted by 13.1% y/y in January after a major 8.5% m/m (seasonally and workday adjusted) plunge in January, according to data published by the statistics office INS. The reading reflects households’ increased propensity for saving ahead of rising uncertainty, also seen in the 9.1% y/y (3.7% m/m) drop in retail sales volume.

The volume of services to households, rather steady over 2023-2024 and during the first half of 2025, already plunged by 7.0% m/m in August in response to higher VAT rates and rising inflation eroding households’ earnings. At that time, the general VAT rate rose from 19% to 21% and more than doubled from 5% to 11% for HoReCa.