Hungarian buyers are still more restrained

Commenting on the latest data, Dávid Németh, K&H’s chief analyst, said that according to long-term, so-called fixed-base data, June sales were 2.2 percent higher than the monthly average in 2012. The figures also show that sales volume has been increasing since November 2023, with the average monthly growth rate being around 3 percent during this period.

In the first six months of this year, retail sales increased by 3.1 percent year-on-year. Perfume stores achieved an above-average 8.4 percent increase in sales. In addition, general merchandise retail sales increased by 6 percent. Mail order and online sales increased by 5.7 percent, while pharmaceuticals and medical devices increased by 5.4 percent. At the same time, sales of books, newspapers and stationery decreased by 2.5 percent in the first half of this year. “The expansion of retail trade is primarily fueled by the increase in net real wages, as the latter increased by 3.9 percent in the first five months of the year. This also shows that the consumption rate is not increasing. This means that the population continues to spend relatively cautiously,” the expert added.

This trend in retail trade may continue in the second half of the year, which means that the sector will be able to grow by around 3 percent per month. Government easing measures may have a positive impact on sales, but it may pose a negative risk if the economy fails to recover significantly and layoffs occur as a result.