Hungary July retail sales up 3.8 pc – UPDATE
In July 2022, the volume of sales in retail trade increased by 3.8% according to raw data and by 4.3% when adjusted for calendar effects compared to the same period of the previous year. In July, calendar-adjusted sales volumes decreased by 2.9% in specialised and non-specialised food shops and rose by 3.2% in non-food retailing and by 27.6% in automotive fuel retailing. In January–July 2022, the volume of sales – also according to calendar adjusted data – was 9.3% higher than in the corresponding period of the previous year.
According to KSH, in July 2022, compared to the same period of the previous year, adjusted for calendar effects:
The volume of domestic retail sales increased by 4.3%.
The volume of sales decreased by 2.9% in specialized and non-specialized food retailing. The volume of sales decreased by 3.3% in non-specialized food and beverages shops accounting for 75% of food retailing and by 1.3% in specialized food, beverage and tobacco stores.
The turnover of non-food retailing increased by a total of 3.2% in volume. Sales volumes rose by 14% in second-hand goods shops, by 7.1% in pharmaceutical, medical goods and cosmetics shops, by 4.7% in textiles, clothing and footwear shops, by 4.5% in books, computer equipment and other specialized stores, by 3.3 in non-specialized shops dealing in manufactured goods and by 1.4% furniture and electrical goods stores.
The volume of mail order and internet retailing accounting for 7.0% of all retail sales and involving a wide range of goods rose by 2.9%.
The volume of sales in automotive fuel stations increased by 27.6%.
Sales in motor vehicles and motor vehicle parts and accessories stores not belonging to retail data increased by 3.5%.
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In July 2022:
Domestic retail sales amounted to HUF 1,472 billion at current prices.
Specialized and non-specialized food shops accounted for 47% of all retail sales, while the relevant figures for non-food retail trade and retail trade of petrol stations were 34% and 19% respectively.
In January–July 2022, compared to the same period of the previous year, adjusted for calendar effects:
The volume of retail trade increased by 9.3%.
The volume of sales rose by 1.4% in specialized and non-specialized food shops, by 11.0% in non-food retail trade and by 29.6% in automotive fuel retail trade.
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UPDATE
Magyar Bankholding chief analyst Gergely Suppán said retail sales growth was lower than expected, suggesting the impact of fiscal transfers early in the year, such as a big tax refund for parents raising children, has tapered off, while households deal with rising inflation. He attributed the drop in food sales to the recovery in the catering sector as more consumers eat out rather than stock up at the supermarket.
He said retail sales growth could continue to slow in the coming months as households face higher energy bills because of restrictions on regulated utility prices and inflation bites into purchasing power. He added that purchases by foreign visitors to Hungary could provide some relief to the sector.
ING Bank senior analyst Péter Virovácz said the fresh data show consumers dialing back consumption at the start of the third quarter as they adapt to climbing inflation. Fiscal tightening, such as the restrictions of regulated utilities prices and the narrowing of eligibility for a popular sole proprietors’ tax, could amplify the trend, he added.