The volume of retail sales in Hungary grew by 5.1 percent in September and by 5 percent in the first nine months of the year, year-on-year. The upward trend has been in place for the 39th consecutive month. Compared to other countries in the EU, Hungary’s retail sales growth rate was the fifth largest in terms of year-on-year data, well above the EU average of 2.2 percent.

Both unadjusted and calendar effect-adjusted data show that in September 2016 the sector registered year-on-year sales growth of 5.1 percent. The volume of sales in the non-food sector was up by 5.2 percent year-on-year, and thus a growth trend of more than three years appears to have continued. This implies that purchases delayed by the economic crisis are being realized, and the share of durable goods in the consumer basket is increasing. The sales volume at specialized and non-specialized stores grew more than expected, by 4 percent, year-on-year.

The volume of retail sales has increased by 17.8 percent since January 2010 and by 14.9 percent since the beginning of 2014. These growth rates put Hungary among the countries with the fastest sales increases in the region.

Thanks to improving employment indicators and benign inflation, in H1 2016 consumption grew at a rate unprecedented since 2003. It is an especially promising sign that households appear to be making up for planned purchases delayed by the crisis. Lending indicators also show a marked pick-up, as the volume of consumer loans has recently soared. As a result of rising wages and improving consumer confidence, the volume of household spending may exceed the 3.9 percent rate formerly predicted by the Convergence Programme for 2016.

Disposable income growth has exceeded retail sales growth, and that signals a strong savings trend.

(Ministry for National Economy)