Indonesia: Retail sales growth dips in April
In April, retail sales expanded 6.7% in annual terms, down from March’s 10.1% growth but above the Bank’s initial estimate of 5.7%. April’s figure was driven by healthy expansions in all subsectors except automotive fuels and information and communication equipment, and was likely propped up by government fiscal support to working-class voters, coupled with muted price pressures.
According to the Bank of Indonesia’s survey, retail sales should have grown 9.0% in May. This figure was likely buoyed by high demand during Ramadan, and a drop-off is likely from June as this temporary effect subsides and the boost from pre-election public spending ebbs.