Indonesia: Retail sales expand at mild pace in July; stronger outturn seen for August
September 10, 2019
In July, retail sales increased 2.4% year-on-year, contrasting June’s Ramadan-influenced 1.8% contraction and broadly in line with the Central Bank’s initial estimate of 2.3%. July’s reading was driven by greater sales of food and clothing. According to the Bank of Indonesia’s survey, retail sales should have grown 3.7% in August.
Despite soft retail sales readings in recent months, the outlook for private consumption is fairly positive, thanks to solid wage growth and mild price pressures.
Author: Oliver Reynolds, Economist