Lithuanian retail sales accelerate growth y/y in May

Lithuanian retail sales accelerate growth y/y in May
By bne IntelliNews June 28, 2017

Lithuanian retail sales grew an unadjusted 6.2% y/y in May in constant prices, data released by Statistics Lithuania on June 28 showed.

The reading marks a pick-up on the 3.8% expansion seen the previous month and keeps shop turnover on a growth track that has persisted since the start of 2015.
 
Sales grew 5.9% on the year on a working-day adjusted basis, slower than the 4.5% adjusted growth in April. Month to month, sales expanded an adjusted 1.7% and 8.4% in unadjusted terms.
 
As has been the case for months, an improving labour market and growing income are driving retail turnover. Similarly to other CEE economies, consumption is a major plank in maintaining economic growth in Lithuania. 

With industry and investment now perking up, consumption's persistence may, however, offer an extra momentum to put the economy on a stronger path this year. Economic expansion came in at 2.2% in 2016, but growth picked up speed to an adjusted 4.1% y/y in the first quarter.

Lithuanian GDP is expected to grow 2.9% in 2017 overall, with the expansion aided by the return of investment projects co-financed by the EU. The rebound in investment is set to compensate for a likely slowdown in consumption growth, according to the European Commission.

Annual growth in shop turnover came on the back of growth across all main segments to the tune of €889.2mn at current prices in May. Sales of food, alcohol, and tobacco grew 2.8% y/y on an unadjusted basis, while sales of non-food products expanded 7.6%, Sales of automotive fuels also grew quickly, at 9.6% y/y. 

 

Data

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