Indonesia: Retail sales moderate while industrial production soars in September
October 31, 2011
In September, real retail sales expanded 18.1% over the same month last year according to Bank Indonesia's Retail Sales Survey (RSS). The reading was well below the 33.4% increase registered in August (previously reported: +33.5% year-on-year) but, nevertheless, marked the 25th consecutive month of double-digit growth. As in the previous month, clothing sales led the expansion, rising 44.9% in September, which was considerably below the 77.2% increase recorded in August. In addition, food and tobacco sales increased 21.8% in September, which was down from the 29.5% rise in August. As a result of the slowdown, retail sales resumed their downward trend, with annual average growth decreasing from 20.6% in August to 20.3% in September. According to the survey, retailers expect short-term growth in sales (3 to 6 months ahead) to remain high, which implies sustained growth in private consumption going forward. Industrial production soared 10.1% in September, which was well above August's meagre 1.6% increase. Annual average growth picked up from 4.7% in August to 5.4% in September, having remained broadly stable since the beginning of this year.