Another month of sharp retail upturn

140506_kisker_ENAccording to the preliminary data, the working day adjusted volum of retail trade sales grew by a whopping 8.3% in March, resulting in a 7.1% average growth in the first quarter of 2014. The continuation of rapid growth confirmes the revival of consumer spending, helped by the palpable rise  of household real incomes.

While the upward trend is robust, the CSO itself notes that the numbers are likely to overstate the actual pace of retail growth. Apart from the change in the methodology of measuring tobacco sales, the growth rates are boosted by the “whitening”of retail sales, a result of the introduction of the online cash register system. As a consequence, the actual growth of private consumption expenditures is likely to have remained moderate, nothwithstanding the seemingly galloping retail growth.