Hungarians still wary to spend, retail data show - analysts

MNB

Although they may have more money, Hungarians are still wary to spend it, analysts told MTI on Wednesday, after fresh data showed retail sales fell 1.3% in July from the same month a year earlier.

Gergely Suppan of Takarékbank said household consumption was still not picking up in spite of the slow rise in employment and the real growth of net wages. Households are being cautious as fiscal adjustments drag on and repayments on foreign currency-denominated loans rise because of the weak forint, he added.

Household consumption is unlikely to contribute to GDP growth this year, he said.

CIB Bank's György Barta said neither the payment of real yields on private pension fund assets transferred to the state nor the flat-rate personal income tax had improved the situation. Higher repayments on foreign currency-denominated loans, the labor market situation and an early repayment scheme that could soak up savings do not bode well for retailers in the coming months, he added.

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