Indonesia: Retail sales lose steam in August
In August, retail sales increased 1.1% year-on-year, below July’s 2.4% rise and falling short of the Central Bank’s initial estimate of 3.7%. August’s reading was driven by greater sales of food, vehicle parts and household equipment, although the fuel and recreation sectors weighed on sales. According to the Bank of Indonesia’s survey, retail sales should have grown 2.1% in September.
Despite soft retail sales readings in recent months, the outlook for private consumption is fairly positive, thanks to a solid labor market and mild price pressures.