Indonesia Retail August 2020


Indonesia: Decline in retail sales softens in August

October 8, 2020

Retail sales decreased 9.2% in year-on-year terms in August, which was a smaller contraction than July's 12.3% decrease. The reading marked the best result since March.

Looking at the details of the release, August's improvement was broad-based, with the food, beverages, and tobacco subsector returning to growth, and the motor vehicles, parts and accessories subsector contracting at a softer pace.

Meanwhile, the trend pointed down, with the annual average variation of retail sales coming in at minus 6.7% in August, down from July's minus 5.8%.

The Central Bank expects retail sales to have contracted a milder 7.3% in September. However, readings for Q3 as a whole still suggest depressed consumer spending in the period, as elevated new Covid-19 cases held back the recovery.

FocusEconomics Consensus Forecast participants see private consumption declining 1.7% in 2020, which is down 0.1 percentage points from last month’s forecast. For 2021, panelists see private consumption increasing 5.2%, down 0.3 percentage points from last month.

Author:, Economist

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Indonesia Retail Chart

Indonesia Retail August 20 20

Note: Year-on-year and annual average variation in retail sales in %.
Source: Bank Indonesia (BI) and FocusEconomics calculations.

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