Romania\u2019s retail sales index gained momentum to 9.7% y\/y in Q2 after the already robust 6.4% y\/y advance in Q1 and confirmed private consumption\u2019s leading role in the country\u2019s economic growth this year.<\/p>\n
Retail sales had gradually lost momentum from 10.2% y\/y in 2021 (post-COVID revenge buying) to 4.5% y\/y in 2022 and 1.6% y\/y in 2023, in line with the high inflation and subdued consumer confidence.<\/p>\n
The beginning of 2024 marked a visible resumption in consumer confidence and this was particularly visible in the sales of non-food goods: +12.3% y\/y in Q1 and +13.5% y\/y in Q2 after the average +2.8% y\/y advance in 2023.<\/p>\n
The robust rise of non-food sales concomitant with above-average advances in the prices for this category of goods (with above-average elasticity to prices) suggests outstanding demand-side pressures generated by the real positive gains of the incomes of at least part of the households.<\/p>\n
The wages posted a real positive annual advance of 6%-7% y\/y in Q1 and above 7% y\/y in April-May. Q2 was thus the fifth quarter with a positive annual real rise in wages, which must have consolidated consumer confidence at a time when the inflation seems to have been brought under control.<\/p>\n
The food sales increased by 6.1% y\/y in Q2, after the more modest +1.7% y\/y advance in Q1. Although modest compared to the outstanding advance in non-food sales, food sales posted a performance nearly twice as high as last year (+3.5% y\/y).<\/p>\n
The retail sales of car fuels returned closer to the levels seen in 2022 after the sudden slump in 2023 and posted a robust +8.0% y\/y growth in Q2.<\/p>\n