Indonesia: Retail sales continue to grow at brisk pace in September
November 12, 2010
In September, real retail sales added 21.1% over the same month the previous year according to Bank Indonesia's Retail Sales Survey (RSS). The reading marked a deceleration over the 31.2% expansion recorded in August but it marked the thirteenth consecutive month of double-digit growth rates. The deceleration over the previous month reflected the end of Ramadan, during which Muslims usually spend more on food products and gifts. Consequently, sales for food and tobacco led the deceleration, expanding an annual 22.7%, down from the 31.6% growth recorded in August. Moreover, clothing sales decelerated sharply, adding 65.7% annually (August: +108.0% year-on-year). Despite the deceleration in September, annual average growth in real retail sales rose slightly from 28.4% in August to 29.0%. Moreover, according to the RSS, retailers remain optimistic and expect sales to continue rising in the coming months, which bodes well for a positive private consumption reading for the fourth quarter. Meanwhile, in October industrial production added only 0.5% over the same month last year, which came in slightly below the 0.6% expansion observed in September. Moreover, annual average growth in industrial production fell to 3.7% in October (September: +4.0% year-on-year).