In comparison to the corresponding period of the previous year, the retail sector expanded by 5.2 percent in October, and by 5.1 percent in the first ten months of the year. Thus, Hungary’s retail sales turnover has been rising for the sixteenth consecutive month. This indicates that turnover growth will persist, as refunds by banks and the phasing out of foreign currency loans can further fuel growth.

The pace of expansion also accelerated, as turnover was 0.8 percent higher in October, compared to the month of September. Rising retail sales turnover has been the result of higher wages in real terms, improving labour market conditions and favourable inflationary processes.

In the tenth month of the year, turnover at filling stations was up by 6.5 percent, due partly to falling fuel prices. In October, the combined volume of sales was HUF 42bn higher year-on-year at the national retail network and at mail order and internet retail service providers. The sales volume of the food retailing sector was up by 3.7 percent, and within that sales jumped by 8.7 percent at stores for food, beverages and tobacco products. Growth was even higher, 6.6 percent, at non-food stores; the volume of sales, for example, increased by 14.1 percent at retailers of textiles, clothing and footwear. Sales of pharmaceutical, medical goods and cosmetics were up by 6 percent.

The increase in retail sales growth has also influenced GDP growth, as in the first three quarters of the year household consumption was 1.6 percent higher year-on-year. Improving retail sales, which has been on the rise for one-and-a-half years now, confirms the success of the Government’s efforts aiming to leave as much money as possible at people, boost household savings and spending.

(Ministry for National Economy)