Indonesia's July retail sales rise 1.1pct on year, survey shows

Jakarta: Indonesian retail sales increased by 1.1 percent in July compared to the previous year, according to a survey released by the central bank on Thursday. The upward trend was primarily attributed to increased purchases of food, beverages, tobacco, and spare parts. However, Bank Indonesia (BI) projected that retail sales would decelerate to a year-on-year growth rate of 0.5 percent in August.

This slowdown is anticipated due to falling communication equipment sales and reduced spending on recreation. In June, retail sales declined by 3 percent on a year-over-year basis, marking the third consecutive monthly contraction. The August consumer confidence index in Indonesia experienced its first rise since April, reaching 118.5.

This positive shift was driven by a surge in car and motorbike sales, which grew by 32.4 percent and 3.2 percent year-on-year, respectively. Retail sales serve as a crucial economic indicator for monitoring activity in Southeast Asia's largest economy.