Actual (June): -4.9% y/y Consensus: -3.8% y/y Previous (May): -7.5% y/y Retail sales remains deep in mire as recession shifted from the foreign trade to the domestic demand. No surprise, households lost appetite to spend money looking at rising unemployment figures and stagnating real wages. Declining retail sales make clear the recent cut by the central bank. However, increasing number of positive economic news abroad raises hopes for the Czech economy (and diminishes a need for additional monetary or fiscal stimulus). The sequence of possible recovery would be the same as the way in which recession stepped into the economy. Foreign trade first in, domestic demand last out.