Indonesia: Retail sales decelerate in June
August 12, 2014
Retail sales in June expanded 8.6% over the same month last year, according to Bank Indonesia’s Retail Sales Survey (RSS). The expansion marked a deceleration compared to the revised 14.7% rise observed in May (previously reported: +15.0% year-on-year). The result represented the first annual growth rate below 10.0% since August of last year. According to the Bank, June’s expansion was driven by strong ongoing growth of sales of information and communication equipment. Meanwhile, sales of food, beverages and tobacco, as well as of automotive fuels, were weaker in June.
Annual average growth in retail sales decreased from 15.9% in May to 15.3% in June, which marked the lowest level in three months. According to the survey, retailers expect sales to pick up in July to a 12.3% yoy growth rate.
Author: Carl Kelly, Economist