Czech retail sales rise 3.7% y/y in Sept, in line with expectations.

By bne IntelliNews November 5, 2013

Czech retail sales increased in September 2013 erasing a decline in the previous month helped by a sharp rise in Internet sales, strong auto sales and two more working days than in the same period of 2012. Retail sales grew 3.7% in unadjusted terms in September, following a 0.3% drop in August, data from the statistics office showed. The reading was in line with market expectations according to a Reuters poll.

On a working day adjusted basis, retail sales in the ninth month of 2013 increased by 0.5% y/y but when adjusted for seasonal factors they went down by 0.7% m/m.

Auto sales increased for the sixth straight month in September and at a much faster rate than in August. Sales and repairs of motor vehicles grew by 9.5% y/y in September, after climbing 4% a month earlier. Retail sales, including automotive fuel, advanced by 1.5% y/y in September, following a 1.8% y/y drop in August.

IntelliNews comment: The September rise in Czech retail sales gives hopes for a recovering consumer confidence as the economy emerged from a record-long slump. Yet, the growth will be restrained by falling real wages. In Q2 real wages in the country fell by 0.3% y/y, following a 2.2% y/y drop in the first quarter. Rising unemployment is also dampening the retail sales growth.  

Related Articles

Row over Communist committee chair threatens formation of new Czech government

A row between Ano, the party of populist billionaire Andrej Babis, and the hardline Communists (KSCM) could ... more

Syrian Kurd leader set free in exchange for promise not to leave the EU

The Czech Republic became more deeply embroiled in a diplomatic quarrel with Turkey on February 27 when a Prague court released Syrian Kurdish leader Saleh Muslim after ... more

Survey determines 54% of Czechs want to stay in the EU

A survey has found that most Czechs remain positive towards Europe, with 54% of respondents saying they would like to stay in the European Union and 34% stating they would be in favour of a ... more