Indonesia: Decline in retail sales eases slightly in July but remains marked
Retail sales slid 12.3% compared to the same month a year earlier in July, which was a less pronounced drop than June’s 17.1% decrease.
July’s reading reflected softer declines in the food, beverages, and tobacco, automotive fuels and recreation sub-sectors. Meanwhile, the trend pointed down, with the annual average variation of retail sales coming in at minus 5.5%, down from June’s minus 4.3% reading.
The Bank expects retail sales to have contracted a milder 10.1% in August as economic activity continues to gradually normalize. However, the figures for July and August still suggest extremely weak consumer spending in the third quarter, as elevated new Covid-19 cases hamper the recovery.