Indonesia: Retail sales remain buoyant in January
March 4, 2011
In January, real retail sales expanded 20.1% over the same month the year before, according to the Bank Indonesia's Retail Sales Survey (RSS). The reading represented a slight slowdown over the robust 21.8% increase registered in December and marked the 17th consecutive month of double-digit growth in retail sales. As was the case in previous months, clothing sales led the expansion, increasing an impressive 65.4% over January 2010. Despite the robust growth, annual average growth in real retail sales fell for a fourth straight month from 26.3% in December to 24.8% in January. According to the RSS, retailers anticipate sales to continue increasing in the short run, which bodes well for private consumption in the coming months. Meanwhile, growth in industrial production decelerated to 7.6% in January over the same month the previous year, which was below the 8.2% increase observed in December. Annual average growth increased to 4.7% in January (December: +4.5% year-on-year).