Growth in retail sales moderates in Indonesia in July
The expansion was below the revised 16.4% increase observed in the previous month (previously reported: +15.9% year-on-year), which had marked a one-year high, FocusEconomics reports.
According to the Bank, July’s deceleration was driven partly by slower growth almost across the board, with sales of food, beverages and tobacco decelerating notably.
Annual average growth in retail sales inched down from 10.6% in June to 10.5% in July. According to the survey, retailers expect sales to rise notably to a 14.6% annual increase in August.
FocusEconomics Consensus Forecast participants see private consumption rising 5.1% in 2016, which is unchanged from last month’s forecast. For 2017, panelists see growth in private consumption at 5.2%.
Higher imports caused Indonesia’s trade surplus to tumble in August despite a less pronounced decline in shipments abroad.
Exports fell 0.7% over the same month last year, which was an improvement over the 16.9% drop seen in July. August’s result marked the smallest contraction since September 2014.
Non-oil and gas exports, which account for the majority of Indonesian shipments, expanded 2.8% in August, which notably contrasted July’s 15.1% decrease.
Meanwhile, oil and gas exports recorded a mild improvement falling 26.3% (July: -29.8% year-on-year).
Imports also recorded the softest decline since September 2014, falling 0.5% (July: -10.6%). ■