Indonesia: Retail sales and industrial production rebound in July
August 26, 2011
In July, real retail sales expanded 22.9% over the same month last year according to Bank Indonesia's Retail Sales Survey (RSS). The reading was above the 19.9% increase registered in June (previously reported: +18.1% year-on-year) and marked the 23rd consecutive month of double-digit growth. As in previous months, clothing sales led the expansion, rising 60.6% in July (June: +51.7% yoy). In addition, food and tobacco sales increased 24.0% in July, up from the 22.6% rise in June. Despite the robust expansion in retail sales, the trend continues to point downwards, with annual average growth sliding slightly from 20.1% in June to 20.0% in July. According to the survey, retailers were optimistic regarding short-term growth in sales (3 to 6 months ahead), which suggests sustained growth in private consumption going forward. Moreover, industrial production accelerated from 5.0% in June to 5.7% in July. Annual average growth remained unchanged at 4.8% in July.