Turkey’s retail sales growth falls further to 4.3% y/y in June

Turkey’s retail sales growth falls further to 4.3% y/y in June
Turkey's adjusted retail sales volume index rose by a weak 4.3% y/y in June.
By bne IntelliNews August 17, 2018

Turkey's calendar-adjusted retail sales volume index rose by 4.3% y/y in June, marking the lowest annual growth recorded since November 2017, national statistics office TUIK reported on August 17.

The monthly annual retail sales growth rate in the year to date peaked at 10.8% in January, then slowed in the following two months before moving up to 8.3% in April. Retail sales growth declined sharply to a revised 5.1% y/y in May.

Turkey’s average annual retail sales growth jumped to 5.7% in 2017 from 2.2% in 2016, according to the TUIK’s revised index. Based on the old series, year on year retail sales growth very slightly escalated from 0.8% in 2016, the lowest annual rise ever, to 1% in 2017.

The Turkish economy saw 7.4% in annual GDP growth in the first quarter of 2018. Private consumption was again the main engine with households’ final consumption in Q1 rising by 11% y/y, higher than the 6.6% seen in Q4 2017.

Average monthly annual retail sales growth quickened to 8.9% in Q1 2018 from 5.7% in Q4 2017, according to TUIK’s retail sales data. Average monthly growth declined to 5.9% in the second quarter of 2018.

Turkey’s economic confidence index rose by 2% m/m to 92.2 in July from 90.4 in June, the lowest level seen since January 2017data from national statistics office TUIK showed on July 30.

The seasonally-adjusted retail confidence index also rose by 3.1% m/m to 97.3. The index hit 106.2 in January but declined for six months moving through to June.