Indonesia: Retail sales decelerate slightly in February
March 30, 2011
In February, real retail sales expanded 18.2% over the same month last year, according to the Bank Indonesia's Retail Sales Survey (RSS). The reading represented a slowdown over the revised 20.0% increase observed in January (previously reported: +20.1% year-on-year) but marked the 18th consecutive month of double-digit growth. As in previous months, clothing sales led the expansion, increasing a stellar 52.7% over February 2010, followed by a 28.4% increase in food and tobacco sales. Despite the robust increase, annual average growth in real retail sales fell for a fifth consecutive month from 24.8% in January to 23.2% in February. According to the RSS, retailers anticipate sales to continue increasing in the short run (3 and 6 months ahead), which bodes well for private consumption in the coming months. Meanwhile, industrial production grew 4.3% in February over the same month the previous year, which was below the 7.7% increase observed in January. Annual average growth remained unchanged in February at 4.8%.