Indonesia: Retail sales growth remains stable; industrial production accelerates
June 30, 2011
In May, real retail sales expanded 16.0% over the same month last year, according to Bank Indonesia's Retail Sales Survey (RSS). The reading matched a 16.0% increase registered in April and marked the 21st consecutive month of double-digit growth. As in previous months, clothing sales led the expansion, accelerating from 46.3% in April to 51.5% in May. In addition, food and tobacco sales increased 19.4% in May. Despite the robust May expansion, the trend in retail sales continues to point downwards, with annual average growth falling for an eighth straight month to 20.5%. According to the survey, retailers anticipate sales to continue growing in the short term (3 to 6 months ahead), which points to sustained growth in private consumption. Meanwhile, industrial production grew 9.2% in May over the same month last year, well above the 5.0% increase tallied in April (previously reported: +5.6% year-on-year). As a result, annual average growth edged up from 5.0% in April to 5.4% in May, remaining on its well-established growth trajectory.