Romania's retail sales increased by 10.3% y/y in September, according to data published by the statistics office INS. The growth was driven by the sales of non-food items (+18.3% y/y), while the sales of food edged up by only 3.9% y/y. The volume of services consumed by households advanced by 4.3% y/y.

For the entire year-to-date period, the retail sales' annual advance was impressive as well: +8.4% y/y. 

The sales of non-food items, which indicate consumers' confidence, strengthened by 14.2% y/y. Food sales increased by 4.1% y/y, while the volume of services consumed expanded by 3.6% y/y.

Consumption is growing very strongly, stimulated by increases in pensions and salaries. Pensions increased twice this year, the first time in January and the second time in September - cumulatively, there was a 40% increase in pensions - and this money went into consumption.

The retail sales, which increased by strong rates in 2024 and Q3 as well, have not improved analysts' expectations about the economic outlook in general. 

The statistics office will publish next week the flash estimate on the evolution of the gross domestic product for the third quarter and the first nine months of the year.

"We have a growth estimate for Q3 of 1% [y/y], but it is possible that it will be lower," commented Ionuţ Dumitru, chief economist of Raiffeisen Bank.

iulian@romania-insider.com

(Photo source: Designer491/Dreamstime.com)