Indonesia: Retail sales deteriorate in October, faster decline expected in November
Retail sales plunged 14.9% in October (September: -8.7% yoy). The sharper drop was largely driven by a deterioration in food, beverages, and tobacco sales. Meanwhile, motor vehicles, parts and accessories sales continued to fall at a sharp pace. Lastly, cultural and recreation goods sales decreased at a sharper rate, while information and communication equipment sales also dipped at a steeper pace than in September.
Meanwhile, the trend pointed down, with the annual average variation of retail sales coming in at minus 8.7%, down from September’s minus 7.4%.
The Central Bank expects retail sales to have contracted a sharper 15.7% in November, amid subdued consumer sentiment and limitations on stores’ capacity and opening hours. As such, the data paints a fairly bleak picture of private consumption in the fourth quarter.