Lithuanian retail sales slow growth in June

Lithuanian retail sales slow growth in June
By bne IntelliNews July 27, 2017

Lithuanian retail sales grew an unadjusted 3.4% y/y in June in constant prices, Statistics Lithuania reported on July 27

The reading shows retail sales grew at a slower pace than the 6.2% annual expansion seen the previous month. Still, shop turnover has been on an uninterrupted and robust growth track since the start of 2015, falling below 3% only once. 

Sales grew 2.6% on the year on a working-day adjusted basis in June, slower than the 5.9% in May. Month to month, sales took a hit, falling an adjusted 1.7% and 2.4% 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 extra momentum to put the economy on a stronger path this year. 

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.

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. A first estimate of growth in the second quarter will be published on July 31.

The slower annual growth in shop turnover in June appears due to a fall in food, alcohol, and tobacco sales, as they contracted 2.5% y/y on an unadjusted basis. Sales of non-food products expanded 7.3%, Sales of automotive fuels grew 7.7% y/y. In nominal terms, sales came in at €866.4mn at current prices in June.

Data

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