Romania’s retail sales index shrinks 4.4% y/y in May

By bne IntelliNews July 3, 2013

Romania’s retail sales volume index shrank 4.4% y/y in May, the statistics office reported. Just like in April and earlier in Q1, the sales’ dynamics was driven in the negative area by lower car fuel sales.

Different timing of Orthodox Easter in 2013 and 2012 [in May and April, respectively] and the extended holiday this year might have had an impact on the short-term indicators in April-May. But even for the period of Apr-May, considered in order to filter out Ester’s effects, the sales index still decreased by 0.9% y/y.

Nonetheless, sales of non-food goods increased by 3% and even sales of food goods edged up 0.1% y/y. Car fuel sales were 8% lower and this pushed the cumulative Apr-May sales in the negative area.

On a broader perspective, there are no grounds to expect a relevant improvement in the retail sales index as long as wages remain roughly constant and consumer lending is very scarce. The low consumer confidence is also reflected by the rising balance of households with banks - households’ balance [bank deposits minus loans] increased by EUR 2.1bn [1.6% of GDP] in the past 12 months ending May 2013.

Retail Sales Index 2009 2010 2011 2012 Q1-13 Apr-13 May-13
Total -10.1% -6.6% -2.0% 2.9% -0.1% 2.8% -4.4%
Total, swda* q/q, m/m n.a. n.a. n.a. n.a. 1.0% 1.4%% -3.0%
A. Food stores -3.6% -9.6% -6.8% 2.4% 1.7% -0.4% 0.6%
B. Non-food stores -9.7% -9.0% 1.7% 1.6% 0.6% 8.7% -2.5%
C. Car fuel -19.7% 3.3% -1.6% 6.2% -3.9% -2.4% -13.0%
Source: INS, *seasonally and workday adjusted

Related Articles

Romanian media tycoon Voiculescu to be released on parole

A Romanian court ruled on July 18 that media tycoon and former politician Dan Voiculescu, who was sentenced to 10 years in prison in August 2014, should be released on parole after serving ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Romanian PM's adviser sacked after proposing tax on churches

Romanian prime ministerial adviser Eugen Teodorovici was reportedly dismissed from the post on July 14, the day after he spoke about the possibility of taxing the local Orthodox Church. Teodorovici ... more