BI Expects Retail Sales to Remain Solid

Respondents of the latest Retail Sales Survey conducted by Bank Indonesia (BI) expect retail sales to remain solid in August 2023

IDXChannel - Respondents of the latest Retail Sales Survey conducted by Bank Indonesia (BI) expect retail sales to remain solid in August 2023, as reflected by positive growth in the Real Sales Index (RSI) of 1.3% (yoy) to a level of 204.4.  

"Solid retail sales performance is driven by increasing sales of Clothing and improving retail sales of Automotive Fuel, Other Household Equipment, Other Goods as well as Spare Parts and Accessories," said BI Communication Department Executive Director Erwin Haryono in a media release on Monday (11/9/2023).

On a monthly basis, respondents predict 0.5% (mtm) growth in the reporting period after contracting 8.8% (mtm) the month earlier, primarily supported by higher sales of Food, Beverages, and Tobacco as well as Spare Parts and Accessories, and strong sales of Other Household Equipment on the back of growing demand during the celebration of Indonesian independence.

"In July 2023, the RSI expanded 1.6% (yoy) to reach a level of 203.3, with Food, Beverages, and Tobacco as well as Clothing confirmed as the main contributors," he stated.

On a monthly basis, respondents reported an 8.8% (mtm) retail sales contraction in July 2023, primarily due to declining sales of Food, Beverages, and Tobacco as well as moderating sales of Automotive Fuel as public activity normalised after the recent school holidays and Eid-ul-Adha national religious holidays.

In terms of prices, respondents anticipate a build-up of inflationary pressures in October 2023 and January 2024, as indicated by respective increases in the Price Expectations Index (PEI) to 118.7 and 134.0 from 115.9 and 130.0. (WHY)