Romania’s retail sales maintain momentum in January

Romania’s retail sales maintain momentum in January
By bne IntelliNews March 6, 2019

Romania's retail sales index increased by 6.6% y/y in January, which is a higher rate compared to last year’s 5.5% average advance in retail sales and compares positively with the expected slowdown in private consumption.

The seasonally and workday adjusted sales index increased by 1.9% in January compared to December, which is a high rate since it equates to an annualised rate (the growth achieved in one year provided the monthly speed is maintained) of over 25%.

Food sales increased moderately by 4.3% y/y in January, but the sales of non-food goods (not including the car fuels) soared by 9.4% y/y, demonstrating still robust consumer confidence despite concerns related to the government’s recent populist steps.

January’s strong sales figures might indicate that the government’s populist rhetoric has reached its purpose of creating a certain momentum among consumers, with promises to redistribute wealth from companies to households through higher wages and higher taxes.

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