Romania's retail sales up 10.3% y/y in September
<p>Romania's retail sales increased by 10.3% y/y in September, according to data published by the statistics office INS. The growth was driven by the sales of non-food items (+18.3% y/y), while the sales of food edged up by only 3.9% y/y. The volume of services consumed by households advanced by 4.3% y/y.</p>

<p>For the entire year-to-date period, the retail sales' annual advance was impressive as well: +8.4% y/y.&nbsp;</p>

<p>The sales of non-food items, which indicate consumers' confidence, strengthened by 14.2% y/y. Food sales increased by 4.1% y/y, while the volume of services consumed expanded by 3.6% y/y.</p>

<p>Consumption is growing very strongly, stimulated by increases in pensions and salaries. Pensions increased twice this year, the first time in January and the second time in September - cumulatively, there was a 40% increase in pensions - and this money went into consumption.</p>

<p>The retail sales, which increased by strong rates in 2024 and Q3 as well, have not improved analysts' expectations about the economic outlook in general.&nbsp;</p>

<p>The statistics office will publish next week the flash estimate on the evolution of the gross domestic product for the third quarter and the first nine months of the year.</p>

<p>"We have a growth estimate for Q3 of 1% [y/y], but it is possible that it will be lower," commented Ionuț Dumitru, chief economist of Raiffeisen Bank.</p>

<p><em>iulian@romania-insider.com</em></p>

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