Retail sales edge up on yields payout, low base - analysts
Analysts attributed the slight increase in retail sales in Hungary in August to a low base and the payout of yields on private pension fund assets.
Retail sales were up 0.4%, both in a year-on-year and month-on-month comparison, in August, the Central Statistics Office (KSH) said on Friday.
Magyar Takarékszövetkezeti Bank analyst Gergely Suppan told MTI retail sales likely edged up because of the payout of real yields on private pension fund assets to former members who returned to the state pension pillar.
Worsening consumer confidence, higher repayments on foreign currency-denominated loans caused by the weakening of the forint and overall caution among households will probably counter the effect of a rise in real wages and could cause retail sales to start falling again in the coming months, he added.
Buda-Cash Brókerház analyst Gergely Tóth also put down the rise in retail sales to the payout of real yields on private pension fund assets as well as the low base.
Consumers could bring purchases forward before the main VAT rate rises from 25% to 27% at the beginning of next year, but the effect will probably be muted, he added.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.