Hungary: No surprise in retail sales

Growth in retail sales turnover came to 4.6% YoY wda, roughly in line with the figures from the summer. The reading is solid, the fourth in a row, and bringing some predictability. The August data are modestly above the 2017 average for the sector, so again we can see it as a favourable reading. The main reasons behind the elevated and stable performance of the sector are still elevated consumer confidence and households’ favourable financial situation fuelled by double-digit real wage growth.

The detailed data show that the growth rates were positive in all three of the main sub-sectors but with mixed results. The turnover in food shops accelerated to 2.9% YoY wda, above the yearly average. Non-food shops closed August strongly, posting a 7.7% YoY wda turnover increase, roughly the same dynamic as in the previous month. Sales volumes in fuel retailing expanded by 2.6% YoY wda, showing deceleration and a below-average growth rate due to rising fuel prices.

After a rather hectic start to this year, retail sales are finally reflecting the favourable economic conditions by showing solid growth MoM.