The 22-month upward retail sales trend is a very positive sign from the aspect of the entire economy, Deputy State Secretary Áron Márk Lenner told public news channel M1, commenting on the latest retail data published by the Hungarian Central Statistical Office (KSH).

As the Deputy State Secretary pointed out, the growth rate of the sector is so large that it already has a substantial impact on the country’s GDP.

While unadjusted data show year-on-year growth of 4.4 percent in April 2015, calendar-effect adjusted statistics show an increase of 5.3 percent. The main drivers of growth were positive labour market processes, but real wage increases and favourable consumer sentiment have also contributed to the expansion.

As another positive factor, bank refunds had resulted in lower monthly instalments and increased household income which in turn boosted household consumption.

Retail sales growth has continued even after the introduction of restrictions on Sunday shopping in March: in light of data from on-line cash registers, turnover in the nine months prior to the change had averaged HUF 141bn per week, while in the ten months after the introduction weekly turnover totalled HUF 158bn. He called it an especially promising phenomenon that the sales volume of durable consumer goods increased by 8.6 percent in the initial four months of the year.

(Ministry for National Economy)