Indonesia: Retail sales and industrial production gain pace in January
March 1, 2012
In January, retail sales expanded 14.0% over the same month last year according to Bank Indonesia's Retail Sales Survey (RSS). The reading was above the 10.1% increase registered in December and marked the fastest growth pace since August 2011. Sales of household equipment, automotive fuels as well as food, beverages and tobacco led the expansion in January. As a result of the monthly rise, annual average growth increased from 9.0% in December to 9.5% in January. According to the survey, retailers expect short-term sales (3 to 6 months ahead) to continue to increase, which implies sustained growth in private consumption going forward. Meanwhile, industrial production expanded 3.3% in January, which was above December's 2.6% increase. As a result, annual average growth remained stable at 3.6% in January.