05 Mar 2019
Retail sales turnover grew by 5.4% in Hungary, following unexpectedly soft results in the month prior. Although this month’s increase still fell below last year’s average of 6.6%, it proved to have rebounded from the past few months.
ING reports that the retail sector’s results were mainly driven by a high turnover in food shops, which increased by 3.9% YoY – the highest increase recorded since October 2018. On the other hand, non-food shops saw their turnover grow by 6.4% YoY, which was less than the growth recorded in early 2018 but strong nonetheless.
The year has certainly started off strongly – however, an average increase of 4% is expected in the retail sector this year. This decrease from 2018 is mainly caused by a lower rate of real wage growth as a result of an increased inflation and the outcome caused by postponed consumption.
Meanwhile, there has been a shift from consumer goods to buying more services as real disposable income has continuously increased. Although this may hinder the retail sector’s growth, the services sector will benefit.