Indonesian Retailers Expect Sales To Rise Strongly

(RTTNews) - Retail sales in Indonesia rebounded sharply at the end of the second quarter, and retailers expect sales to maintain strong growth momentum in July, the results of a survey by Bank Indonesia showed on Wednesday.

Retail sales climbed 7.9 percent year-on-year in June, reversing a 4.5 percent rise in the previous month.

The growth in June was largely driven by more sales of food, beverages, and tobacco, followed by automotive fuels and clothing.

On a monthly basis, retail sales dropped at a slower rate of 0.3 percent in June versus an 8.0 percent fall in May.

Retailers predicted sales to rise by 6.3 percent annually in July. A positive outlook for food, beverages, tobacco, clothing, and spare parts and accessories sales is expected to contribute to the overall rise.

Nonetheless, retailers expect sales to fall more severely by 4.6 percent on a monthly basis in July and are expected to experience sales declines generally as demand normalizes after the recent school holidays, national religious holidays, and collective leave days.