Retail sales in Hungary fell by an annual 2.4% in October as vehicle fuel and non-food sales dropped, the Central Statistical Office (KSH) said. Adjusted for calendar year effects, retail sales declined by 1.9%. Adjusted food sales rose 1.2%, while non-food sales dropped by 1.2% and vehicle fuel sales fell by 10.5%.
ING Bank analyst Péter Virovácz said October retail sales were “well below the market consensus”, adding that uncertainty and the worsening situation on the labour market could make households more likely to save, as a precaution, and less likely to spend. Erste Bank analyst Orsolya Nyeste said the data were worse than expected and are evidence of the unfavourable outlook for the labour market and household income because of the second wave of the pandemic.