Indonesia: Retail sales soar while industrial production eases
October 3, 2011
In August, real retail sales expanded 33.5% over the same month last year according to Bank Indonesia's Retail Sales Survey (RSS). The reading was above the 23.8% increase registered in July (previously reported: +22.9% year-on-year) and marked the 24th consecutive month of double-digit growth. As in the previous month, clothing sales led the expansion, rising 78.8% in August (July: +62.2% yoy). In addition, food and tobacco sales increased 25.6% in August, up from the 24.9% rise in July. As a result of the robust expansion in retail sales, the trend reversed, with annual average growth increasing from 20.1% in July to 20.6% in August. 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 decelerated from 5.9% in July to 3.9% in August. Annual average growth remained unchanged at 4.8% in August for a fourth consecutive month.