Indonesia: Retail sales gain momentum in October
In October, retail sales increased 3.6% year-on-year, a marked improvement from September’s 0.7% expansion and beating the Central Bank’s initial estimate of 2.9% growth. October’s reading came on the back of stronger food, beverages and tobacco sales. The Bank expects retail sales to have expanded 3.4% in November.
The uptick in retail sales so far in Q4 can likely be linked in part to considerable monetary easing in recent months, in the form of lower interest rates and macroprudential policy tweaks. Going forward, the outlook for private consumption is fairly positive, thanks to the ongoing impact of past easing, and a solid labor market.