Czech retail sales weaker but unemployment better than expected

June retail sales slightly disappointing

Czech retail sales, excluding cars in June surprised on the downside after more encouraging May figures (these were also revised downwards from -0.7% to -1.9 year-on-year).

As such, June retail sales stagnated in YoY terms, while analysts expect growth of around 3%. And after adjusting for working-day bias (+2 days YoY in June 2020), they even fell by 2%.

Non-food items sales grew by 4.7% YoY (versus 7.7% average growth in 2019), but when adjusted for working days, only increased by a modest 1.4 % YoY. Food sales continued to contract by around 3% YoY since April.

Car sales lowered its YoY contraction (-34% YoY in May and -45% in April), but with the double-digit fall of around 12 % (-17% YoY working-day-adjusted), it was also disappointing. Mainly as new-cars registration in June improved to just 5% contraction. However, new figures from car registrations didn’t confirm the improving trend, as new registrations fell again by 9% YoY in July.

See the rest of the report here.