Czech Republic retail sales increased 4.4% in real terms from a year ago in May, while shedding 0.1% compared to the previous month. The annual reading came below market expectations but remains within the solid spending range. Sales of non-food goods added 5.1% annually, food sales increased 4.2%, and fuel sales gained 2.2% from a year earlier.
Growth in retail sales is solid, but momentum has stalled.
Photo: Dreamstime
Discretionary spending remained strong, as sales in non-food non-specialised stores maintained a double-digit annual growth rate of 13.2% in May. Meanwhile, sales in food-dominated non-specialised stores increased by 4.9%, and spending in food-dominated specialised stores shed 2.0% from a year ago.
Overall, this is still a relatively solid reading of consumer spending in real terms, pointing to a positive though moderate contribution of household demand to 2Q real GDP dynamics.
More information:
ING
www.think.ing.com