Retail sales growth accelerates to 4.3 pc in June

Retail sales in Hungary grew by 4.3 percent in June from the same month a year earlier, accelerating from a 3 percent increase in May, data released by the Central Statistical Office (KSH) on Friday show.

Calendar-adjusted data show retail sales were up an annual 5.2 percent in June. Adjusted food sales rose by 2.1 percent while non-food sales grew by 8.7 percent. Vehicle fuel sales were up an annual 7.4 percent.

In January-June calendar year-adjusted retail sales rose by an annual 5.7 percent while unadjusted sales were up 5.6 percent. Adjusted food sales rose by 2.9 percent while non-food sales grew by 8.5 percent. Fuel sales increased by 7.9 percent.

Real wage rises are keeping retail sales buoyant, though as more income is spent on services, investments and savings, a decline in retail sales is possible, financial analysts told MTI after the data release.

Péter Virovácz of ING Bank said retail data from the second quarter and confidence surveys indicated a slowdown in economic growth going into the third quarter.

He said retail sales were likely to grow at around 5 percent during the year, while economic growth was expected to ease to 4.5 percent from 4.9 percent last year.

György Vámos, the head of the National Retail Association, said the slowdown in retail sales growth was due to adjustments in spending priorities, as many households start to save, assess their needs and eye various loan opportunities and government securities.

András Horváth of Takarékbank said real wage growth was likely to surpass 6.5 percent this year, so spirited growth in retail sales may continue.

Nevertheless, growth of 5.5 percent rather than last year’s 6.5 percent is on the cards, he added.

As we wrote yesterday, Hungary’s seasonally-adjusted Purchasing Managers Index (PMI) fell to 51.3 points in July from 54.1 in June, the Hungarian Association of Logistics, Purchasing and Inventory Management (Halpim), which compiles the index.

Hungary wages climb 11.2 pc: Net wages grew to 744 euros

The average gross wage for full-time workers in Hungary grew by an annual 11.2 percent to 364,400 forints (EUR 1,120) in May, read more HERE.

Source: MTI