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.