Switzerland: Retail sales growth ebbs in May
July 1, 2021
Retail sales grew 2.8% year-on-year in calendar-adjusted terms in May (April: +37.7% c.a. yoy). The notable deterioration largely reflected drops in food, beverages, and tobacco and household equipment sales.
On a monthly basis, retail sales dropped 1.8% in seasonally-adjusted terms in May, a softer decrease than April’s 2.9% fall. Meanwhile, annual average retail sales growth fell to 6.6% in May (April: +7.0%). This signals a worsening trend in the retail trade sector. The loss of momentum in retail was likely due to consumers shifting spending towards services as Covid-19 restrictions were lifted, rather than a sign of weak private consumption.
Author: Oliver Reynolds, Economist