The retail sector continued to grow robustly in the month of April. In comparison to the corresponding period of 2013, the volume of retail sales jumped by 9 percent in April 2014.

In light of data adjusted for calendar effects, the retail sector increased by 6.3 percent in April. In January-April 2014, retail sales soared by 6.9 percent. The volume of sales increased by 7.5 percent at stores of food, beverages and tobacco products, by 7 percent at non-food stores and by 3.8 percent (preliminary figure was 3.9 percent) at filling stations.

Data of the past couple of months show that the positive trend in place since the end of 2012 has continued unabated. Improving retail sales turnover has been the result of steady advancement in employment, real wage growth and the rebound of consumer confidence. The Government is expecting this upward trend to continue in the coming months.

This positive outlook is also confirmed by GDP data, as household spending has improved in each quarter since the beginning of 2013. Compared to the massive growth of the retails sector, household spending registered a modest increase. This phenomenon is likely to be due to the fact that service sector growth – the typical driver of consumption – has been lagging behind that of the retail sector.

First quarter data on household spending are in line with the forecast of the Convergence Programme.

(Ministry for National Economy)