Domestic retail sales growth beats EU average

The volume of retail sales grew by 6.6 percent and 4.4 percent, respectively, in February 2016 and in the initial two months of the year. Thus, an upward sales trend has been in place for the 32nd month in a row. The growth figure of February is the fifth largest within the European Union.

Within the sector, sales volume at non-food retailers increased by 8 percent in February. This impressive growth is attributable to the significant turnover growth (18.8 percent) at mail order retailers – in line with international trends of Internet sales. Sales volume at filling stations rose by 9.1 percent, thanks to the 11.2 percent year-on-year drop of fuel prices which stemmed from lower crude oil prices.

The sales volume at food and non-specialized food retailers grew by 4.9 percent. Retail sales data confirm that the propensity of households to spend money has returned, as income outlook expectations have turned much more upbeat.

The Ministry for National Economy is expecting that the volume growth of retail sales is set to continue in coming months thanks partly to the following factors: strong consumer confidence, the reduction of personal income tax rate, real income growth, record-high employment levels and certain Government measures – such as higher tax family allowance for families with two children, the abolition of some fees and charges and the reduction of VAT on pork from 27 percent to 5 percent.
(Kormany.hu, Nemzetgazdasági Minisztérium)