According to the latest data published by the Hungarian Central Statistical Office (KSH), the volume of retail sales increased by 1.2 percent in comparison to the corresponding period of the previous year. Unadjusted data signals an even larger growth of 1.7 percent. Within this sector, sales volume at retailers of foods, beverages and tobacco products as well as non-food products was up by 1.0 percent, while that at filling stations increased by 2.9 percent.

Retail trade data confirm the detailed GDP statistics for Q2 2013, which also show that household consumption is on the rise. In comparison to the previous quarter, each component – such as household consumption, government spending, investment, exports and imports – increased.

Under the previous governments, Hungary (along with Greece) was the worst performing country in the respective ranking of the European Union. Currently, however, in light of available data Hungary is again one of the countries with the largest year-on-year growth rates.

Improving retail sales are the result of real wage growth, better labour market conditions and growing consumer confidence. Retail sales are expected to go on increasing in the remaining months of the year.

(Ministry for National Economy)