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Consumption in June jumps 2.7 pct y-o-y

Autor: half
ZAGREB, Aug 7 (Hina) - Retail turnover in Croatia in June rose 2.7 per cent on the year, growing for the second consecutive month and more than predicted, the State Bureau of Statistics said on Wednesday.

In nominal terms, retail turnover this past June rose 4.6% from June 2012, while in real terms it went up 2.7%.

Four macroeconomists polled by Hina predicted that consumption in June 2013 would rise 0.3% year-on-year.

Retail turnover had been declining since March 2012 but unexpectedly rose 1.1% this past May and then 2.7% in June.

Consumption was facilitated by the growth in the number of tourist arrivals and nights in June as well as the slower growth of consumer prices, said Zdeslav Santic, chief economist at Splitska Banka.

Retail turnover was also facilitated by a low base, given that consumption had been declining since March 2012.

Thanks to the growths in May and June, in quarter two consumption could have a positive effect on gross domestic product after a long time.

Consumption can be expected to grow in the months ahead as well thanks to the tourist season, but its recovery cannot be expected soon because of a weak labour market and salary stagnation. Santic said this was so because unemployment would continue to grow, consumer optimism remained low and households continued to deleverage.

(Hina) ha

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