Indonesia: Retail sales remain buoyant in November
January 10, 2011
In November, real retail sales added 18.8% over the same month the year before according to Bank of Indonesia's Retail Sales Survey (RSS). The reading represented a slight improvement over the 18.5% increase recorded in October and marked the 15th consecutive month of double-digit growth. Stronger clothing sales led the acceleration, expanding an annual 64.1%, up from the 59.2% increase recorded in October. Moreover, sales for food and tobacco added 29.6% in November (October: +24.8% year-on-year). On the other hand, construction materials sales fell sharply, declining 29.2% annually (October: -13.6% yoy). Despite the November acceleration, annual average growth in real retail sales fell from 28.8% in October to 27.5% in November. According to the RSS, retailers expect sales to remain stable in the coming months, which may lead to a subdued private consumption reading for the fourth quarter of 2010. Meanwhile, in November, industrial production added 4.2% over the same month the year before, which came in below the 4.6% expansion observed in October (previously reported: +0.5% yoy). Moreover, the upward trend in industrial production is flattening, with annual average growth reaching 4.1% (October: +4.0% yoy).