Actual (May): 3.1 %
Consensus: 1.0 %
Previous (Apr): -4.5 %
Czech retail sales grew by 0.4 pct in May over the previous month. The y-o-y growth of 3.1 pct beat estimates. However, the good figure was mainly achieved thanks to higher number of working days (+2) and seasonal effects. The adjusted figure shows a slight decline in sales. Regarding GDP, it seems so far that household expenditures will not show further improvement in 2Q compared with the relatively good first quarter.
Sales of cars were the key positive driver, showing a significant 13pct growth in May. Also sales of computers speed up and we can see growth in sales of clothes. On the other hand, sales of household equipment are still declining, showing that domestic demand is still not strong enough to boost sales of luxury goods.