Indonesia: Retail sales pick up while industrial production decelerates
August 3, 2011
In June, real retail sales expanded 18.1% over the same month last year, according to Bank Indonesia's Retail Sales Survey (RSS). The reading was above the 16.0% increase registered in May and marked the 22nd consecutive month of double-digit growth. As in previous months, clothing sales led the expansion, rising 51.8% year-on-year in June (May: +51.5% year-on-year). In addition, food and tobacco sales increased 22.8% in June, up from the 19.3% rise in May. Despite the rebound in June, the trend in retail sales continues to point downwards, with annual average growth falling for a ninth straight month to 20.0%. According to the survey, retailers anticipate sales to continue to grow in the short term (3 to 6 months ahead), which points to sustained growth in private consumption going forward. Meanwhile, industrial production grew 4.9% in June over the same month last year, below the 5.3% increase tallied in May (previously reported: +9.2% yoy). Annual average growth remained unchanged at May's 5.0% but still on a well-established growth trajectory.