The retail sales volume index in Romania increased by 2.5% YoY in July, the weakest annual growth rate in six quarters and half the average annual growth in Q1 or Q2 this year.

The seasonally-adjusted retail sales index edged up a modest 0.2% MoM after the 2.0% contraction seen in June, according to the statistics office INS.

"Romania's economy has entered a slowdown process, and the trend will continue," according to Adrian Codîrlașu, vice-president of CFA Romania. Consumption has already reached significantly higher levels than before the pandemic, but the recovery stage is over, he says, quoted by Economedia.ro.

The non-food retail sales posted modest growth rates of 1%-2% in both June and July (+1.4% YoY in July), demonstrating the more cautious spending behaviour of households.

The food sales increased comparatively faster compared to both previous quarters and non-food sales, still at a moderate 3.0% YoY in July.

Not fully recovered after the lockdown period in 2020, hence at a modest level in absolute terms, the sales of car fuels increased by 3.7% YoY in July, faster than the average retail sales index but still a fraction of the robust (+9% YoY) growth rates in both Q1 and Q2.

(Photo: Stokkete/ Dreamstime)

iulian@romania-insider.com