Indonesia: Retail sales contract at the beginning of the year

In January, retail sales decreased 1.8% over the same month of the previous year, contrasting December’s subdued 0.7% expansion. The result came after the holiday season and marked the first decline since July 2017. A contraction in sales of durable goods, such as information and communication equipment, weighed on overall growth.

The trend continued to point downwards in January and annual average growth came in at a multi-year low of 2.2% (December: 2.9%). According to the survey, retailers expect sales to rebound in February and grow 1.0%.

Indonesia Private Consumption Forecast

FocusEconomics Consensus Forecast participants see private consumption rising 5.1% in 2018, which is unchanged from last month’s forecast. For 2019, panelists see growth in private consumption broadly steady at 5.2%.