According to the latest flash report of the Central Statistics Office (KSH), in the initial two months of 2012 retail sales totaled almost 1115bn HUF in Hungary. The turnover of foodstuff which makes up almost half of sectoral sales (48 percent) increased by the greatest extent in 5 months (1.7 percent) in comparison to the corresponding period of the previous year.

The total volume of retail trade moderated by 1.4 percent in February compared to the corresponding period of 2011. This development was mainly attributable to weaker demand for automotive fuels and certain non-food products. Demand, however, was stronger for food, drinks and tobacco as well as industrial products than in February 2011. Among non-food products books, clothing, cosmetics articles and mail order services were in higher demand than in the corresponding period of the previous year.

Source: KSH

The retail sales of non-food goods declined by 2.7 percent in comparison to February of last year, which figure is primarily due to the turnover of furniture and electrical goods that make up the 9.5 percent of total retail trade, as well as to the 22.5 percent fall of the trade of second-hand goods which constitute a much smaller part of total sales.

At filling stations whose turnover makes up the 19 percent of total retail trade volume, as a consequence of high fuel prices sales were down by 2 percent.

According to a Eurostat report, in the countries of the euro-zone in comparison to the corresponding period of the previous year the volume of retail sales declined by 2.1 percent, consequently Hungary in this regard performed better than the euro-zone. The retail sector of Germany, our key trade partner, contracted by 2.5 percent, and via foreign trade that can have an adverse effect on Hungary as well. As far as the region is concerned, the decline of retail sales was smaller in Hungary than in Bulgaria (-6.4 percent) or Poland (-2.7 percent) and on a par with Austria.

(Ministry for National Economy)