Retail sales turn more volatile in Romania but hit a new record

Retail sales volume in Romania increased by 3.2% y/y in May when the seasonally-adjusted index reached a new record level after the weaker figures in April suggested private consumption fatigue.

Despite the high inflation rates, real wages in Romania declined somehow in the second part of last year, but they have recovered quickly, meanwhile reaching record levels in March-April this year (latest available data), while employment remained close to the highest level ever as well.

Unlike weaker sales figures in April (-1.5% y/y) might suggest, the retail sales in Romania may be more volatile from one month to another without demonstrating a negative trend. On the contrary, retail sales volume increased by 3.3% y/y in January-May, driven by 5.1% stronger food sales and 4% larger non-food sales.

In May alone, the annual growth rates for food and non-food sales were 2.4% y/y and 4.1% y/y, respectively. The seasonally-adjusted indices suggest a more volatile but positive overall advance of the non-food sales – the closest indicator for consumer confidence.

The sales of car fuels indeed eased by 1% y/y in January-May while posting a positive 2.5% y/y advance in May alone.

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