Romania’s retail sales up 4.9% y/y in June

Romania’s retail sales volume index increased by 4.9% in June compared to the same month last year, according to the National Statistics Institute (INS).

In the first six months of the year, the sales volume increased by 6.8% compared to the same period in 2018 (at a faster pace compared to the average 5.5% advance in 2018).

The country’s largest lender Banca Transilvania estimates that domestic consumption will accelerate from 5.2% in 2018 to 6.3% in 2019 as an effect of loose and unsustainable mix of economic policies.

The sales of non-food goods keep growing faster than the average, supported by rising household income and low interest rates: by 9.7% year-on-year in January-June and 7.8% in June alone. The sales of food followed a roughly constant upward pattern, having risen by 4.8% year-on-year in January-June and by 4.6% in June alone.

The sales of car fuels were more volatile, partly because of the prices. Car fuels sales index increased on average by 5.4% year-on-year in January-June, which is not far from the average. However, it soared by 12.6% year-on-year in January-March and remained flat (+0% year-on-year) in April-June.

The seasonally-adjusted sales index stagnated within a narrow band during the first half of the year, particularly because of the volatile dynamics of the car fuels sales. The sales of food and non-food goods have advanced at more or less constant paces (with the non-food sales advancing at a higher pace).

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