Hungary: Retail sector past the peak - ING

Peter Virovacz, Senior Economist at ING, notes that working days-adjusted retail sales of Hungary increased by 5.3% year-on-year in July, lower than the consensus.

Key Quotes

“The one percentage point drop compared to the previous month also means that the latest reading is the worst since July 2017.”

“Moreover, if we take a look at the changes in volume of sales in retail shops compared to the monthly average of 2015, it is quite clear that the improving momentum has broken as the retail sector’s performance has plateaued.”

“The deceleration in July is mainly due to food shops, where the Hungarian Central Statistical Office registered a 2.2% YoY growth, the worst in 2018 so far.”

“When it comes to non-food, an almost double digit growth rate of 9.2% YoY matches the trend we’ve seen this year.”