Lithuanian retail sales grew an unadjusted 6.4% y/y in June, according to data released by Statistics Lithuania on July 27.
The reading shows retail sales maintained solid growth rate, slowing just 0.3pp from the 6.7% expansion the previous month. Sales have now expanded in every month since January last year, with consumer consumption helping buoy economic growth in the face of reduced demand for exports.
Sales grew 6.2% on the year on a working-day adjusted basis, faster than the 5.2% growth the previous month. Month to month, sales gained an unadjusted 0.5%, while expanding 0.6% on adjusted terms.
As has been the case for months, retail turnover is being driven by an improving labour market and growing income. Consumption is a major plank in maintaining economic growth, as Lithuania pushes to find new export markets to replace weakened sales to Russia. This has so far helped Lithuanian economic expansion in 2016. GDP grew 2.4% y/y in Q1.
June's annual growth in shop turnover was largely driven by sale of motor fuels, which expanded 18% on unadjusted basis, while sales of food grew 4.9%. On the other hand, sales of textiles, clothing, and footwear fell 0.8%.