Indonesia: Real retail sales contact at sharpest pace since September 2011 in March
May 12, 2020
Retail sales dropped 4.5% in year-on-year terms in March, which was a deterioration from February's 0.8% decrease. March's result marked the sharpest drop since September 2011.
Looking at the details of the release, food, beverages, and tobacco sales increased in March, while motor vehicles, parts and accessories sales decreased. Meanwhile, automotive fuels sales declined at a more pronounced rate. Cultural and recreation goods, and information and communication equipment sales also contracted.
The trend pointed down, with the annual average growth of retail sales coming in at 1.3%, down from February's 2.5% reading.
The Bank expects retail sales to have contracted 11.8% in April due to the impact of Covid-19 and related social distancing measures, which suggests suppressed private consumption in the second quarter.
Author: Oliver Reynolds, Economist