Romania’s retail sales strengthen in Q4 despite weaker food sales

Romania’s retail sales volume reached a new record in December, when it increased by 1.3% MoM (workday and seasonally adjusted terms) and 3.6% YoY, according to data published by the statistics office INS.

Retail sales decelerated to +4.1% YoY in 2022 – from +10.1% YoY in 2021 when the households were still in revenge-buying mode, and the war in Ukraine was far. For 2023, the state forecasting body expects even softer private consumption (+2.3%) amid high interest rates, uncertainty related to the energy bills and weaker economic growth.

The moderate advance of retail sales in December was mainly driven by the stronger sales of car fuels (+7.7% MoM and +11.9% YoY). The sales of non-food goods also increased by decent rates, but the food sales (seasonally adjusted) have been slightly shrinking since April.

When it comes to quarterly figures, the food sales have contracted in quarterly terms for the second quarter in a row: by 0.5% QoQ in Q4, after the 1.2% QoQ contraction in Q3. Sales of non-food goods rose by 1.0% QoQ in Q4, partly recovering from the 1.6% QoQ contraction in Q3.

The sales of car fuels boasted the strongest advance: +5.2% QoQ, helping the overall sales index (seasonally adjusted) to pick up by 0.8% QoQ and fully offset the decline marked in Q3.

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