The eight-month upward trend of retail sales continued in February: the year-on-year increase of 6.7 percent registered in this period is the best figure since 2006. Data are indicating that household consumption has continued to improve, due -- among others -- to the cutting of utility costs, the introduction of family tax allowance, the wage hike for healthcare employees and teachers, record-breaking employment growth, the increase of wages in real terms and the overall improvement of consumer confidence.

In February 2014, each retail trade segment registered improvement: sales at stores of food, beverages and tobacco products, non-food stores and filling stations were up by 8.2 percent, 4.7 percent and 6.4 percent, respectively. Due to a change in the statistical methodology regarding the sales of tobacco products, turnover in this segment was 2.4 percent higher in February 2014 compared to the figure calculated in accordance with the previous method. However, the sales increase of 4.3 percent as calculated in line with the former method is also remarkable.

Retail sales growth exceeded 6 percent in January and February this year, while last year household consumption increased from quarter to quarter. It is a positive sign that the Hungarian economy has entered a period of growth which besides exports is also underpinned by domestic demand and consumption. Accordingly, retail sales are expected to continue to grow in the coming months.

(Ministry for National Economy)