Czech retail sales decline deepens in Sep 2012.

By bne IntelliNews November 6, 2012
Czech retail sales dropped for the second straight month in September 2012 and at their fastest rate in five months deepening concerns about the weakening domestic consumption. Retail sales declined by 3.3% y/y in unadjusted terms in September, following a 0.8% fall in August, the statistics office said. The September fall was bigger than the market expectations for a 2.7% decline in a Reuters poll. The data were affected by two fewer working days than a year ago, the office said. On a working day adjusted basis, retail sales in September edged 0.2% higher, after slipping by 0.8% y/y a year ago and when adjusted for seasonal factors they edged up 0.4% m/m, following a 0.1% m/m hike in August. Sales and repairs of motor vehicles decreased by 4.4% y/y in non-adjusted but in working days-adjusted terms they increased by 1.5%. Seasonally-adjusted sales advanced by 2.8% in September. Retail sales, including automotive fuel, dipped by 2.9% y/y in non-adjusted and by 0.4% y/y in working days-adjusted terms. Seasonally-adjusted sales dropped 0.6% m/m. IntelliNews comment : The September drop in Czech retail sales confirmed a tendency of weakening consumer demand that proved to be the main drag on economic growth in Q3. The domestic demand is curbed by the governments austerity package that includes tax hikes and spending cuts. As a result of the higher VAT rate at the beginning of 2012, consumer prices hit a three-year high in March outpacing the nominal wage growth. The weak demand also prompted the central bank to cut the interest rates three times this year slashing the main two-week repo rate to a new record-low of 0.05% on Nov 1.

Czech retail sales decline deepens in Sep 2012.

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