Retail Sales Rise 3.8% in May

Retail sales in Hungary rose 3.8% year-on-year in May, data released by the Central Statistical Office (KSH) on Monday show.

Retail sales rose 4.8% when adjusted for calendar year effects.

Adjusted food sales increased 3.2%, non-food sales rose 7.4% and turnover at petrol stations climbed 8.4%. Online and mail-order sales volume, which accounted for 8.6% of retail turnover, increased 15%.

In a month-on-month comparison, retail sales edged 0.7% higher, adjusted for seasonal and calendar year effects.

In absolute terms, retail sales came to HUF 1,764 billion in May. Food sales accounted for 48% of the total, non-food sales for 37% and sales at petrol stations for 16%.

In January-May, retail sales rose an adjusted 4.8% and unadjusted 4.6% from the same period a year earlier. Food sales increased an adjusted 2.6%, non-food sales rose 5.7% and motor fuel sales were up 10.1%.

Commenting on the data, ING Bank senior analyst Péter Virovácz said historically high consumer confidence, a continued low inflation environment and strong wage growth provided a favorable basis for the retailed sector and thus sustained consumption growth. For the full year, the analyst forecast 5-6% retail sales growth, adding that consumption would continue to be the main driving force for the Hungarian economy this year.