Estonian retail sales grew 2% y/y at constant prices in July, according to data released by Statistics Estonia on August 31.
The reading marks a further slowdown after turnover managed a rise of just 4% in June; July is just the third of the last 12 months to see retail sales growth below 5%. The expansion of shop turnover is being driven by rising wages and low inflation, with consumption the major pillar for economic growth, but the July result represents the slowest growth since January 2015.
On a monthly basis retail sales expanded 4% in July. Nominal sales came in at €568.2mn. Sales of manufactured goods increased 3% y/y, slowing from a 6% expansion seen in June. Within that segment, sales fared best in stores selling second-hand goods and in non-store retail sales, such as stalls, markets, and direct sales, with turnover increasing 23% y/y.
Turnover at grocery stores was 1% higher on the year. Sales of automotive fuel increased 4%, Estonian Statistics note.