According to both unadjusted and working day-adjusted data, the volume of retail sales grew by 4.2 percent year-on-year in Hungary, thus the sector’s positive sales trend has been in place for 49 consecutive months. Comparison to international data shows that the pace of retail sales growth exceeded the average of the EU.

In July 2017, the volume of sales at non-food retailers increased by 7.5 percent year-on-year. Data show that households have spent more and more on items the purchase of which they had delayed during the crisis and thus durable consumer goods has been gaining weight in consumers’ basket of goods and purchases.

Sales at food and non-specialized food retailers rose by 1.9 percent year-on-year; the relatively modest pace of growth was due to the fact that the value of purchases had returned to the pre-crisis level already in 2014. Sales at filling stations were up by 3.4 percent in the observed month. On a longer time horizon data show that the volume of retail sales has increased by 27.1 percent since January 2010 and by 18.8 percent since the beginning of 2014. Steady economic and lending growth indicates further increases in household consumption, which has also been underpinned by various Government measures. The Government-initiated six-year wage agreement is expected to boost consumption, especially demand for services, through real wage growth.

(Ministry for National Economy)