Czech retail sales growth strengthens to 6% in April 2014, matches expectations

By bne IntelliNews June 5, 2014

Czech retail sales grew by 6% y/y in April 2014 quickening from a revised 5.1% the month before driven by a robust demand during the Easter holidays, data from the statistics office showed. The reading was in line market expectations.

On a working day adjusted basis, retail sales in the fourth month of 2014 expanded by 4.9% y/y but when adjusted for seasonal factors they shrank by 0.1% m/m, softening from a 0.4% m/m decline in March. April 2014 had had the same number of working days as in the corresponding month a year ago.

Auto sales increased for the tenth straight month in April posting an annual growth of 9.8%, weakening from 13.8% y/y in March. Retail sales, including automotive fuel, also increased but at the much weaker pace of 4.3% y/y, yet, they quickened from a 1.3% rise in March.

IntelliNews comment: Czech retail sales grew for the sixth straight month in April reflecting recovering consumer confidence as economic growth is gaining strength after the country emerged from a protracted recession last year. The rising retail sales bode well for the economy that posted a fourth consecutive quarterly rise in Q1 and is on track to return to a full-year growth in 2014 after two years of contraction. The statistics office said on June 4 the GDP expanded by 0.4% q/q and by 2.5% y/y in Q1 helped by recovering household demand. Household consumption, which had been a drag on growth in 2013, grew 1.5% y/y in Q1.

Related Articles

Multilateral lender IIB to place its inaugural transaction in Czech koruna

Moscow-based development bank International Investment Bank (IIB) has priced its denominated private placement transaction with three-year floating rate notes in koruna of CZK501mn, the bank said in ... more

ArcelorMittal proposes to divest assets in Czech Republic, Macedonia and Romania

International steel and mining company ArcelorMittal said on April 13 it has proposed a divestment package to the European Commission in a bid to obtain approval for its planned acquisition of ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more