In April 2015, data adjusted for calendar effects show that the volume of retail sales grew by 5 percent year-on-year. Thus, the sector has been expanding for the 22nd consecutive month. In the initial four months of the year, sales volume soared by 6.3 percent compared to the same period of the previous year. According to Eurostat data, the volume growth of retail sales in Hungary was the third largest within the European Union.

Higher sales volume has been the result of the steadily improving employment situation and the subsequent growth of wages in real terms. Favourable inflationary processes and upbeat consumer confidence have also underpinned the expansion.

In April 2015, the sales volume at stores of food, beverages and tobacco products edged 1.6 percent higher. The sales volume of non-food products grew by 7.1 percent. The drop of vehicle fuel prices has also been behind the 9.3 percent sales volume growth at filling stations.

Retails sales were higher in spite of the introduction of restrictions on Sunday shopping in March this year: besides the latest report of the Hungarian Central Statistical Office on retail sales, this trend is also confirmed by data compiled from on-line cash registers. These indicate that the measure has not hampered sales: while weekly sales volumes in the nine weeks prior to introduction averaged HUF 141bn, those in the fourteen weeks following the introduction averaged HUF 158.5bn.

In the coming months, retail sales growth is expected to be further boosted by forex loan refunds and lower monthly loan instalments.

(Ministry for National Economy)