JAKARTA (TheInsiderStories) – Indonesian retail sales recorded at 216.6 or increased 1.3 percent year-on-year in November 2019, Bank Indonesia has reported today (01/10). On a monthly basis, however, the figure lower than the 3.6 percent gain record in October.
This was the fifth straight monthly increase in retail sales, supported by sales spare parts and accessories group by 17.0 percent, household equipment group of 5.5 percent, and the food, beverages & tobacco by 4.6 percent.
Meanwhile, sales dropped further for fuel by 11.5 percent, cultural & recreational goods to 12.0 percent, clothing by 9.4 percent, and information & communication equipment of 5.2 percent.
“Retail sales continued to grow positively in November, although it slowed compared to sales in the previous month,” the central bank wrote in a statement.
Regionally, the retail sales slowdown caused by the sales declines in a number of cities surveyed. The sales in Medan contracted 6.5 percent, followed by Denpasar of 4.9 percent. The decline in the cities is expected to continue in December as seen from the estimated contractions of 9.4 percent and 4.8 percent in the previous period.
Henceforth, retail sales for December are expected to further decline. This can be seen from the December real sales index of 235.9 or slowing down 0.2 percent year-on-year and also lower from November.
The decline supported by the cultural and recreation goods commodity group contracted by 17.0 percent or deeper than the decline of 12.0 percent from the previous month. Even so, retail sales growth in December is predicted to increase on a monthly basis. The real sales index recorded by 8.9 percent, higher than 0.4 percent in November.
The increase mainly supported by the food, beverage and tobacco commodities which were predicted to grow by 10.7 percent and the clothing sub-commodity of 7.9 percent.
Meanwhile, retail sales in the fourth quarter of 2019 are predicted to grow higher than the previous quarter. It’s predicted to grow by 1.6 percent, higher than the 1.4 percent in the third quarter. The central bank sees there will be an opportunity for sales of the food, beverage, and tobacco commodity group to grow 4.5 percent, from 1.4 percent in the third quarter.
The survey also shows respondents believe retail sales in the next three months will decline. It’s recorded at 140.8 or lower than 155.7 in the previous month. Meanwhile, retail sales in the next six months are expected to increase by 156.1.
Written by Lexy Nantu, Email: email@example.com