Hungary retail sales up 5.8 pc in May

Retail sales in Hungary grew by an annual 5.8 percent in May, increasing for the second month in a row after eight months of declines, the Central Statistical Office (KSH) said on Tuesday.

Retail sales also rose by 5.8 percent when adjusted for calendar year effects. Adjusted food sales increased by 2.6 percent and non-food sales climbed 8.7 percent. Vehicle fuel sales increased by 9.7 percent.

Sales of clothing and footwear shops rose by 59.8 percent and second-hand shop sales climbed 48.4 percent, continuing to show strong growth after unprecedented increases in April, when non-essential businesses reopened after a pandemic lockdown.

In absolute terms, retail sales reached 1,146 billion forints (EUR 3.3bn), at current prices. Food sales accounted for 47 percent of the total, non-food sales for 38 percent and vehicle fuel sales by 15 percent.

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Péter Cseresnyés, state secretary at the innovation and technology ministry, told public broadcaster M1 that further growth in retail trade was expected in view of increasing wages and the removal of coronavirus-related restrictions.

The May figure indicates that “retail has started to recover”, adding that 6 percent growth was similar to the tendency 7 years before the coronavirus outbreak.

During the epidemic, food shops stayed open, therefore spectacular growth was not on the cards, but the volume of online purchases has significantly grown, Cseresnyes said. Online companies have registered a combined turnover of 500 billion forints (EUR 1.4bn) since the start of the year, offering prospects of a further rise, he said.

Cseresnyés also noted that

over 4.5 million Hungarians held jobs with “continuously growing wages”, ensuring that their purchasing power had not diminished.

The high number of people inoculated against coronavirus ensures that all citizens can enjoy freer shopping now that the restrictions have been lifted, he added.