Indonesia: Retail sales decelerate for a fourth straight month in April
June 9, 2011
In April, real retail sales expanded 15.9% over the same month last year, according to the Bank Indonesia's Retail Sales Survey (RSS). The reading represented a slowdown over the revised 16.4% increase observed in March (previously reported: +17.6% year-on-year) but marked the 20th consecutive month of double-digit growth. As in previous months, clothing sales led the expansion, increasing a robust 46.3% over April 2010. Moreover, food and tobacco sales increased 24.2% in April. Despite the robust increase, annual average growth in real retail sales fell for a seventh consecutive month, dropping from 22.2% in March to 21.4% in April. According to the RSS, retailers anticipate sales to continue growing in the short term (3 to 6 months ahead), which points to sustained growth in private consumption. Meanwhile, industrial production grew 5.6% in April over the same month the previous year, which was below the revised 6.7% increase observed in March (previously reported: +6.2% yoy). Despite the deceleration, annual average growth inched up from 4.9% in March to 5.0% in April.