Retail sales up 5,9% in March 2010
Wednesday, 19th May 2010Consumers general spend more in March, during Easter weekend celebrations and school holidays. Looking back, sales rose 3,4% m/m in March 2009, and 3,9% m/m in March 2008. Sales reported this year does therefore suggest a stronger growth in trade sales, and perhaps a further sign that the economy is on a recovery road. On a year on year basis, retail trade sales reported the first positive growth in 13 months, up 1% y/y, following a 1,3% contraction in February 2010. Growth in retail has been less than impressive to say the least since 2007, when y/y growth averaged 7%.
Over a running 12 month period (to smooth out some of the month to month fluctuations) sales are however still significantly lower (down 4,4%), compared to -5% in December 2009. Just looking at the first quarter, sales ended flat in real terms. Senstivie to changes in the retail sector, the total number of square metres approved for new shopping space fell by 31% during the first quarter of 2010, while sqm completed were also down 14%.
A recovery, albeit mild, in the retail sector, however does not automatically imply a recovery in the construction sector. Sales at hardware stores (in current prices) were still down 6,9% y/y in March 2010, based on a running 12 month total, compared to a 4% increase in general sales, calculated on the same principle (MAT, current prices).
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