In August 2015, the volume of retail sales was up by 4.6 percent year-on-year, while it increased by 6 percent in the initial eight months of the year.

The domestic retail sector has been expanding for the 26th consecutive month. In August 2015, the volume of sales increased by 3.7 percent at food- and non-specified food retailers, by 4.5 percent at non-food retailers and by 7.2 percent at filling stations, compared to the same period of the previous year. The volume of sales within the national network of retail stores as well as at mail order and internet retailers reached HUF 817 billion at current prices.

Food, drinks and tobacco stores accounted for 47% of all retail sales, while the relevant figures for non-food retail shops and the network of filling stations were 35% and 18% respectively.

The record-high increase in the number of people in employment and the growth of wages in real terms were among the main factors behind this upturn. Current retail sales data aptly demonstrate that consumers have adapted to the introduction of shopping restrictions on Sundays and they also tend to see their future income outlook in a more positive light.

Sales growth was in line with the prior expectations of the Ministry for National Economy and they confirm the adequacy of Hungarian reforms. Incoming data are also in line with the prognoses of the Convergence Programme which had predicted 3 percent household consumption growth for this year. The positive retail sales trend is also being reflected in GDP growth figures, as the volume of household consumption increased outstandingly, by 3.0 percent, in Q2 2015, the highest figure since the beginning of 2006.

(Ministry for National Economy)